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University  of  California. 


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How  to  Keep  Farm  Accounts 


A  practical  book  for 
the  practical  farmer 


By 

H.    L.  STEINER 


ttAV/ElLL,  my  Friend,  thou  art  now  just  entering  the  last  month  of  another  year.  If 
'  '  thou  art  a  Man  of  Business,  and  of  prudent  Care,  belike  thou  wilt  now  settle  thy 
Accounts,  to  satisfy  thyself  whether  thou  hait  gained  or  lost  in  the  Year  past,  and  how 
much  of  either,  the  better  to  regulate  thy  future  Industry  or  thy  common  Expense*." 


POO«    niCHAHD    m    ALMANACK 


Toledo,  Ohio 

STEINER    &   CO. 

Publishers 

1905 


^^ 


Copyright  1905 
By  H.  L.  STEINER 


This  book  is  dedicated  to 
the  every-day  farmer— the 
"master-wheel"  of  prosperity 


PREFACE 


GREAT  deal  has  been  said  about  the  need  of  a  simple  system 
r\  of  accounts  for  the  Farmstead— something  possible  on  the 
average  farm  every  day  of  the  year— one  relieved  of  useless 
detail,  and  still  show  its  earnings  and  expenses — it's  owner's 
assets  and  liabilities.  Talcing  the  conditions  which  govern 
actual  work  on  the  farm  into  consideration,  nothing  specific 
has  yet  been  published  for  the  practical  farmer,  and  it  is 
for  hiri\  lis  book  has  been  written.  It  is  elementary  because  many  have 
had  n  opportunity  to  study  bookkeeping,  therefore  the  man  who  knows 
nothin  :  Dout  it  has  been  kept  in  sight  from  cover  to  cover. 

Tie  illustration  given  is  introduced  to  show  the  application  of  the 
fundaicntal  principles  of  accounting  to  the  every-day  routine  of  general 
farmin.  No  special  sets  for  stock,  dairy  or  fruit  farms  is  thought  necessary 
becau;  the  principles  of  accounts  are  unchangeable  and  only  vary  in  their 
applicaon.  All  the  farmer,  dairyman,  fruit-grower  or  stockman  really 
needs  to  fully  understand  the  principles  when  no  trouble  will  be 
expenoced  in  arranging  a  system  of  accounts  to  suit  his  wants,  which  will 
vary  t  a  certain  extent  on  every  farm  and  with  each  individual. 

^Bookkeeping  is  simply  a  matter  of  record  and  to  do  it  correctly  only 
requi's  that  the  principles  of  debit  and  credit  be  understood.  It  is 
necesiry  on  many  farms  and  useful  on  all.  The  question  ought  not  to  be, 
shall  .s:eep  some  simple  set  of  books,  but  what  form  is  the  most  practical? 
If  thiiijook  will  help  you,  its  object  will  have  been  fulfilled. 


INDEX 


Account — Definition  of 21 

Accounts — Arrangement  of 30 

The  Household 5 

The  Poultry 6 

Personal ,  . . .  .      24 

Real 22 

Representative 23 

Usefulness  of i 

Accounts  with  Persons  From  Whom  We    Buy   Goods 204 

Rules  for  Debic  and  Credit 205  to  209 

At  the  End  of  the  Year 210 

Accounts  with  Persons  to  Whom  We  Sell   Produce 197 

Rules  for  Debit  and  Credit 198  to  202 

At  the  End  of  the  Year 203 

Illustration  of Plates  86  and     87 

Advertising — "jt^ 

Annual    Statement — (Illustrated)    224 

April  Cash  Account — Example  of Plates  8  and  9 

Arrangement  of  Accounts 30 

August  Cash  Account — Example  of Plates  24  and  25 

Balancing  the    Cash 51 '52,   66 

Banking 95'  215 

Reasons  for 95 

Uses  of 95 

Bank  Account 211 

Rules  for  Debit  and  Credit 211  to  213 

At  the  End  of  the  Year 214 

Illustration  of Plates  88  and  89 

Bank  Checks — How   to  Write 230.  231 

Numbering  of  Same  and  Why 96 

When  Cancelled 96 

Bank   Note — Form  of 245 

Bills  Payable 97,   loi 

Bills    Payable    Account 136 

Rules  for  Debit  and  Credit 137  to  139 

At  the  End  of  the  Year 140 

Illustration  of Plates  64  and  65 

Bills  Receivable 72 

9 


Bills  Receivable  Account 143 

Rules  for  Debit  and  Credit 144  to  149 

At  the  End  of  the  Year 1 50 

Illusiration  of Plates  66  and  67 

Bookkeeping — Definition  of 13 

Books  of  Original  Entry 17 

Books  of  Record 3 

Bran 99 

Building  and  Improvements 74 

Building  and  Improvement  Account 129 

Rules  for  Debit  and  Credit 130  to  134 

At  the  End  of  the  Year  135 

Business    Paper — Filing   of 8 

Remarks  on 226  to  237 

Capital  Stock  Account — Its  Equivalent  on  the  Farm 117 

Cash    Book.   The 20.   30 

At  the  End  of  the  Year 105 J/2 

Definition  of 42 

How    to    Balance 51.    66 

Posting  of 53  to  55 

Rules  for 42 

Ruling  of 43 

Cash — On  hand  the  first  of  the  month 58 

On  hand  the  end  of  the  month 51 

When  credited 42 

When  debited 42 

When  over 52 

When  short 52 

Checks — As  receipts 230 

How  to  indorse 235 

Hbw   to   write 230,  231 

Xnmbering  of  same  and  why 06 

Stopping  payment  of 236 

When    discrepancies    exist 232 

When  you  receive  one  not  endorsed 226,  22I 

Classification  of  Accounts 30 

Closing  the  Ledger  at  the  End  of  the  Year 104 

Clover  Seed lOO 

Commercial    Paper — Forms    of 228  to  245 

Cost  of  Production 4 

Corn— Rule  to  find  Contents  of  Cribs 247 

Rule  for  Measuring  when  on  Cob 246 

Shrinkage 248 

Credit — Laws  of 25 

Day  Book.  The 19 

Debit — Laws  of 25 

December  Cash  Account — Example  of Plates  40  and  41 

Depreciation — Of  Buildings 129 

Of  Implements    36 

Destroying  Notes 141 

Discount  .Account iQt 

Discounting  Notes  that  have  Endorsers 228 

Discrepancies  in  Notes,  Checks  or  Drafts 232 

Double  Entrv  Bookkeeping 15 

10 


Drafts— Time    or    Sig"!:! 142 

When  Buying  229 

When    discrepancies    exist 232 

When  you  receive  one  not  endorsed 226,  227 

Due  Bill — Form  of   242 

End  of  the   Year 104,   105,  220 

Errors  in  Trial  Balance 57 

Essentials  of   Farm    Accounts 2 

Essential   Books  of  Record 16 

Extra  Help  Employed  on  the  Farm 50,  69 

Expense  Account 161 

Rules  for  Debit  and  Credit 162  to  164 

At  the  End  of  the  Year 165 

Illustration  of Plates  70  and  71 

Farm  Accounts — Essentials  of 2 

Farmstead,    The,   Account 117 

Rules  for  Debit  and  Credit 118  to  120 

At  the  End  of  the  Year 117 

Illustration  of Plates  62  and  63 

Farm  Help  Account,  The 117 

Rules  for  Debit  and   Credit 178  to  180 

At  the  End  of  the  Year 181 

Illustration  of   Plates  78  and  99 

Farm    Ledger,   The 26 

Index  of   29 

Ruling  of 28 

Size  of 27     32 

Farmer's  Mutual  Insurance 196 

February  Cash  Account — Example  of Plates  48  and  49 

Feed  Account,  The 166 

Rules  for  Debit  and  Credit 167  to  169 

At  the  End  of  the  Year 170 

Illustration  of Plates  "2  and     73 

Fertilizers    80 

Filing  of  Business  Papers 8 

First  Entry  to  Make  When  Books  are  Opened 44 

First   of   the  Year 11 

Freight   84 

Lost    in    Transit 67 

Gestation  Table 262 

Grain — Rule  for  finding  contents  of  bins 249 

Shrinkage    of    2^0 

Hay — Exact  measurement   of 251 

Rule  for  finding  tons  in  windrow 252 

Rule  to  find  contents  of  mow 253 

Rule  for  finding  contents  of  stacks 254,  256,  257 

Rule  for  finding  tons  in  load 255 

Rule  for  finding  amout  of  hay  or  other  products   sold  by  the 

ton 258 

Hogs 70 

When  taken   for  personal  use 91 

How  to — Arrange  or  Classify  Accounts  in  the  Farm  Ledger.  .  .    30  to     32 

Balance  the  Cash  Account 51,     52 

Close  the  Ledger  at  the  End  of  Year 220  to  225 

11 


How  to — Enter  an  order  received  for  Farm  Products 48.  49 

Enter  an  order  you  send  for  seed 59 

Find  amount  of  Hay  in  Load 255 

Find  amount  of  Hay  in  Windrow 252 

Find  amount  of  Hay  in  Mow 253 

Find  amount  of  Hay  in  Stacks 254,  256,  257 

Find  percentage  of  Loss  or  Gain 225 

Find  value  of  Products  sold  by  the  ton 258 

Find  interest  at  any  rate  for  any  time 261 

Indorse  a  check 235 

Make  claim  to  R.  R.  Co..  for  shipment  lost  in  transit 67 

Make  a  check 230,  23 1 

Open  or  Begin  a  Farm  Ledger T^y  to  46 

Open   or   Begin   a   Cash    Account 42  47 

Open  an   Account   with   Bank 95.  214 

Open  and  Close  the  Bills  Payable  Account 136  to  140 

Open  and  Close  the  Bills  Receivable  Account 143  to  150 

Open    and    Close    the    Building    and    Improvement    Account 

^      129  to  135 

Open  and  Close  the  Expense  Account 161   to  165 

Open  and  Close  the  Farmstead  or  Capital  Account 117  to  120 

Open  and  Close  the  Farm  Help  Account 177  to  181 

Open  and  Close  the  Feed  Account 166  to  170 

Open  and   Close  the  Implement  Account 171   to  176 

Open  and  Close  the  Interest  Account 186  to  190 

Open  and  Close  the  Labor  Account 182  to  185 

Open  and  Close  the  Production  Account 155  to  160 

Open  and  Close  the  Proprietor's  Account 106  to  116 

Open  and  Close  the  Taxes  and  Insurance  Account 193  to  195 

Open  and  Close    an    Account    with    Property    other  than  the 

Farmstead   121  to  128 

Open   and   Close   Accounts   with   Persons   to   whom    you    sell 

Produce '.    197  to  203 

Open    and    Close   Accounts    with    Persons     from     whom    you 

buy  goods 204  to  210 

Locate  errors  in  the  Trial  Balance 57 

Measure  Corn  in  Crib 247 

Measure   Grain    in    Bins 249 

Measure  Wood 259 

Post  the  Cash  Book i,2i  to  55 

Stop  payment  of  a  check 236 

Take  an  inventory 7.  34  1036 

Take  a  Trial   Balance 56 

Horse  Shoeing 68 

Household  Accounts 5 

Husking  and  Shredding 90 

Implements — Depreciation  of 36 

Repairs  on 68 

When  bought 63-  69 

Implement  Account  171 

Rules  of  Debit  and  Credit 172  to  175 

At  the  End  of  the  Year 176 

Illustration  of Plates  74  and  75 

Index 29 

12 


Insurance 156 

Interest  Tables 260,  261 

Interest  Account,  The 186 

Rules    for    Debit    and    Credit 187  to  189 

At  the  End  of  the  Year 190 

Illustration  of Plates  82  and  83 

Inventory — Denfinition  of 34 

Examples  of 35,  222 

Importance  of 7 

\'aluation  of 36 

January  Cash  Account — Example  of Plates  44  and  45 

Joint  Note — Form  of 244 

Journal,  The 19 

July  Cash  Account — ^Example  of Plates  20  and  21 

June  Cash  Account — Example  of Plates   16  and  17 

Keeping  Separate  Accounts  with  each  product 4 

With   each    field 4 

Labor 62,  69 

Labor  Account 182 

Rules  for  Debit  and  Credit 183,  184 

At  the  End  of  the  Year 185 

Illustration  of Plates  80  and  81 

Lambs 89 

Land loi 

Laws  of  Debit  and  Credit 25 

Ledger,  The 18 

Index  for 29 

Ruling  of 28 

Size  of 27,  32 

To  close  at  the  End  of  Year 104 

Liabilities 221,  224 

Statement  of 37.  39 

Linseed  Meal 78 

Live    Stock — Records 31 

On  hand  at  beginning  of  the  year 34 

Bought  during  the  year 1 57 

Sold   during  the  year 155 

Record  of  Mating  and  Dates  of  Birth 31 

Locating  Errors  in  a  Trial  Balance 57 

Loss  and  Gain  Account 216 

Rules  for  Debit  and  Credit 217,  218 

Illustration  of Plates  90  and  91 

Lost  Shipments — How  to  Collect 67 

Lumber 103 

March  Cash  Account.  Example  of Plates  52  and  53 

Mating  and  Date  of  Birth  of  Live  Stock 31 

May  Cash  Account,  Example  of Plates  12  and  13 

Measures  and  Weights — ^Tables  of 263 

Measurement  of  Corn 246  to  248 

Of  Grain 249,  250 

Of  Hav 251  to  257 

Of  Wood 259 

Men — Hired  by  the  Year 62,  104,  105 

Middlings 60.  166.  168 

13 


Money  Taken  for  Personal  Use 6  76  83 

Money  Orders — Express 49 

Post-Office 49 

Mortgages 97,  loi 

Nails 78 

Net  Gain  or  Loss — To  Find 224 

Net  Worth 40,  223,  224 

Notes — Forms  of 233,  238  to  245 

Having  Endorsers 228 

How  Debited  and  Credited 154 

Paid,  When  Secured  by  Mortgage 141 

Waiving  Protest 228 

\\hen  Given 136 

\\'hen  Paid 136,  234 

When  Partial  Payments  Have  Been  Made 151 

When  Renewed 1 52 

When  Discounted 153,   192 

When  Discrepancies  Exist 232 

When  Endorsed  Over  to  You 237 

November  Cash  Account,  Example  of Plates  36  and  37 

Oats -76    167,  168 

October  Cash  Account,  Example  of Plates  32  and  33 

Opening  Entries  Wlien  Books  Are  Begun 44  to  4? 

Orders  for  Farm  Products,  How  to  Enter 48,  49 

Original  Entry,  The  Books  of 17 

Partnership 107,  108 

Percentage  of  Loss  or  Gain,  To  Find 225 

Personal  Accounts 24 

Posting S3,  54 

Order  of 55 

Potatoes 87 

Taken  for  Personal  Use 88 

Poultry  Accounts 6 

Present  Worth 116 

Principles  and  Definitions  of  Accounts 12  to  25 

Private  Accounts    108 

Production  Account 155 

Rules  for  Debit  and  Credit i^f->  to  159 

At  the  End  of  the  Year 160 

Illustration  of Plates  68  and  69 

Products  of  the  Farm — When  Sold 155 

When  Taken  for  Personal  Use 88 

When  Sold  on  Time 197 

When  given  to  help  on  account 179 

Promissory  Notes — Forms  of 243 

Proprietor's  Account 104.  106  to  108 

Rules    for    Debit    and    Credit 109  to  115 

At  the  end  of  the  Year 116 

Illustration   of Plates  60  and  61 

Railroads — Claims  Against 67 

Real  Accounts 22 

Real  Estate  Accounts 121 

Rules  for  Debit  and  Credit 122  to  127 

At  the  end  of  the   Year 128 

Receipts — Forms  of 239,  241 

14 


Receipt — To  apply  on  account 239 

In   full   of   account 240 

For  payment  on   note 241 

Record  of  Live  Stock , 31 

Red  Ink  in  the  Ledger lo 

Rent 126 

Repairs  of  Implements 68 

Representative  Accounts 23 

Resources    221,  224 

Resources — Statement  of ZJ-  38 

Rules  of  Debit  and  Credit 47 

Rules  Useful  Wlien  Taking  the  Farm  Inventory 246  to  259 

Ruling   of    Cash    Book 43 

Of  Ledger 28 

Sales   of   Farm   Products 48 

Salt 60 

Scales 74 

Seed — Entry    of    When    Buying 59,  81.  85 

September    Cash    Account — Example    of Plates  26  and  27 

Shipments   Lost   in   Transit 67 

Shoeing   68 

Shredding  Fodder  90 

Single  Entry  Bookkeeping 14 

Sight  Drafts  142 

Size  of  Ledger  25,  32 

Statement  of  Resources  and   Liabilities 37 

Stallion  Services 64 

Stationery    61 

Stock  Register   31 

Sundry   Labor    69 

Tables  of  Weights  and  Measures 263 

Taxes   and   Insurance  Accoimt 193 

Rules   for   Debit   and   Credit 194 

t\t   the  End  of  the  Year 195 

Illustration   of    Plates  84  and  85 

Threshing   yy 

Tile 102 

Time  Drafts  142 

Timothy   Seed   85 

To  find  what  you  have  made  or  lost 22t,  to  225 

Transactions  that  occur  when  you  are  not  at  home 9 

Transferring  an  Account  to  a  new  page  or  a  new  Ledger 140 

Trial  Balance 54'  56,  65 

To  locate   errors   in 57 

Usefulness  of  Accounts  on  the  Farm i 

Waiving  Protest  on  Notes  you  discount  that  have  endorsers 228 

"Wear  and  Tear"  of  Implements 36 

Weights  and  Measures  263 

What  You  Must  Know  Before  You  Begin  or  Open  Your  Books 40 

\\'heat   79 

Shrinkage   of   250 

When  Ought  the  Farmer  Open   his   Ledger Ii 

Wood — Measurement   of  259 

Wool — When    Sold   68,  158 

Yearly  Statement  223,  224 

15 


Part  On. 


"I  would  not  impose  on  a  busy  farmer  the  keeping 
of  an  elaborate  set  of  hooks,  but  some  simple  form,  of 
accounts  will  be  a  great  aid  in  successful  farming.'' 

James  Wilson,  Secretary  of  Agriculture. 


FOREWORD 


1.  The  farmer  who  works  all  day  under  a  blazing  sun,  nat- 
urally looks  upon  the  keeping  of  accounts  from  a  different  view- 
point than  other  men  in  business  for  themselves.  For  besides  the 
long  hours,  rush-of-work  and  scarcity  of  help  during  the  busy  days 
from  seedtime  till  harvest,  he  has  the  natural  aversion  to  writing 
and  detail  common  to  all  who  do  active  physical  labor.  There- 
fore, it's  not  a  matter  of  surprise  when  we  think  of  the  conditions 
under  which  the  American  farmer  must  labor,  that,  although  he 
has  over  twenty  billions  of  dollars  invested  in  his  business,  he 
usually  leaves  the  accounting  of  it  for  later  consideration,  with 
the  result  that  a  record  is  seldom,  if  ever  attempted  of  his  farm- 
stead's earnings  and  expenses. 

Admitting  the  value  of  bookkeeping  on  the  farm!,  the  first 
question  that  comes  to  the  mind  of  the  practical  farmer  is:  "What 
is  the  best  way  to  keep  my  accounts." 

2.  THE  ESSENTIALS  OF  FARM  ACCOUNTS.— In  farm 
accounting  there  are  two  essentials  which  ought  always  be  kept 
in  mind.  These  are  accuracy  and  simplicity.  That  all  bookkeep- 
ing must  be  accurate  goes  without  saying,  and  that  farm  accounts 
should  be  simple  and  free  from  detail  is  apparent  to  any  one  at  all 
familiar  with  actual  every-day  farm  conditions. 

3.  THE  BOOKS  OF  RECORD.— The  uses  of  modern  com- 
merce demand  that  the  books  of  record  suit  the  business  in  which 
they  are  used.  In  the  great  mercantile  and  industrial  organiza- 
tions, it  is  often  economy  of  time  to  have  many  books  of  record 
but  not  so  on  the  farm.  Here,  the  less  detail  and  fewer  books  of 
record  the  better,  hence,  the  method  described  and  illustrated  in 
the  following  pages  makes  use  of  but  one  book. 


HOIV  TO  KEEP  FARM  ACCOUNTS. 


If  s  a  common  sajlng  that  no  two  men  keep  their  books  alike. 
But  the  difference  if  any,  comes  from  the  individual,  his  business 
and  the  details  necessary  to  be  shown.  The  matter  that  jroes  into 
the  Farm  Ledger  will  depend  on  the  farmer  liimself.  It  will  be 
mtich  or  little  as  he  may  decide.  However,  let  him  beware  lest 
his  books  begun  in  the  flood  tide  of  enthusiasm,  when  work  is  slack 
and  evenings  long,  be  not  too  full  of  unimportant  detail.  They 
are  then  almost  sure  to  be  neglected  when  the  busy  days  come 
later  on.  It  is  much  better  to  begin  a  simple  account  and  keep  it 
accurately  than  to  attempt  too  much.  Think  of  your  busiest  days, 
not  those  in  which  you  have  the  least  to  do. 

4.  THE  COST  OF  PRODUCTION.— Notwithstanding  the 
farmstead  with  its  full  c()m])lemeut  of  live-stock,  implements  and 
buildings  can  be  likened  to  a  "plant"  of  the  manufacturer,  and  al- 
though the  farm  is  a  factory  to  all  intents  and  purposes,  it  is 
questionable  whether  the  j)ractice  of  cost  or  departmental  ac- 
counting is  practical  on  the  average  farm.  On  this  point  there 
may  be  a  difference  of  o])iuion,  but  on  the  average  farm  one  who 
would  attempt  to  keep  an  accurate  account  with  either  fields, 
crops  or  kinds  of  stock  would  have  his  hands  so  full  during  the 
busy  season,  that,  nine  times  out  of  ten,  tiie  accounts  would  be 
neglected  and  thought  too  troublesome  to  continue.  For  this  rea- 
son, most  farmers  should  treat  their  accounts  with  the  farm  as  a 
whole — rather  than  to  open  an  account  with  each  field,  with  their 
hogs,  their  sheep,  their  cattle,  etc.  It  is  true  that  accurate  cost- 
accounting  is  a  necessity  in  the  factory.  The  manufacturer  must 
know  what  it  costs  to  make  and  put  his  products  on  the  market, 
but  is  it  so  all-important  to  the  farmer?  In  nearly  every  rotation 
there  are  certain  crops  necessary  to  keep  uj)  the  farm  fertility  that 
can't  be  accurately  set  down  in  figures.  The  results  from  the 
farmstead  as  a  whole,  eventually,  is  of  the  most  importance.  And 
the  practical  farmer,  if  he  cares  to  know,  can  take  his  pencil,  and 
come  as  near  as  is  necessary  to  figuring  the  cost  of  growing  an  acre 
of  corn,  or  what  his  cattle  or  sheep  net  him.  Therefore,  don't  draw 
the  lines  so  fine  in  actual  practice  that  your  resolve  to  keep  ac- 
counts will  have  died  "a  bornin;"  but  reniiembor.  that  the  cost  of 
production  of  farm  products  depends  so  much  on  the  elements 

22 


HOIV  TO  KEEP  FARM  ACCOUNTS. 


over  which  you  have  no  control,  and  that  the  details  are  so  many 
if  you  would  have  them  accurate,  that  it  is  altogether  best  not  to 
attempt  it.  It  is  true,  you  have  seen  every  now  and  then  in  the 
agricultural  press,  articles  regarding  the  cost  of  producing  a 
pound  of  pork,  beef  or  mutton,  and  what  it  costs  to  grow  the  dif- 
ferent grains  and  grasses.  Now,  however  useful  the  exact  cost 
may  be,  the  farmer  or  stockman  who  would  attempt  to  keep  such 
an  account  with  each  crop,  and  the  different  kinds  of  live-stock  he 
would  raise,  will  find  it  all  but  an  impossible  task.  Manufactur- 
ers who  deal  only  with  dead  things  can  easily  keep  exact  cost 
accounts,  but  living  and  growing  things  possess  an  individuality 
that  varies  with  the  season,  with  the  feeder,  and  depend  on  con- 
ditions which  do  not  admit  of  hard  and  fast  rules.  Recently  in 
The  Breeder's  Gazette,  the  author  of  a  standard  work  on  "Feed- 
ing" had  this  to  say  concerning  it:  "Feeding  has  been  frequently 
referred  to  as  a  science  but  it  is  far  from  being  an  exact  science. 
It  is  still  in  the  empirical  state  of  experimentaion.  No  other  voca- 
tion of  man  more  thoroughly  illustrates  the  aphorism  that  a  little 
learning  is  a  dangerous  thing.  As  the  result  of  a  single  experi- 
ment we  find  formulas  laid  down  with  all  the  dictum  of  authority, 
and  the  great  army  of  feeders  commanded  to  "about  face,"  and  the 
very  next  experiment  under  similar  conditions  gives  opposite  re- 
sults. Do  you  know  that  after  fifteen  years,  during  which  the 
Government  has  expended  $225,000  as  a  minimum,  it  is  impossible 
to  tell  the  cost  in  corn  of  a  pound  of  pork?  "The  more  I  learn 
the  more  I  know  I  don't  knoM'." 

For  practical  purposes,  a  "Production"  account  showing  the 
gross  sales  less  the  items  which  go  to  make  up  the  general  expense 
of  the  farmstead  as  shown  by  the  Loss  and  Gain  account  in  the 
illustration  herein  (Plates  90  and  91)  will  be  all  that  is  needed. 
Much  more  satisfaction  and  real  benefit  will  be  found  in  a  simple 
set  of  accounts  accurately  kept,  than  to  attemp  one  burdensome 
with  detail,  and  then  at  the  end  of  the  year  find  it  to  be  of  no  value 
whatever.  Far  better  to  keep  an  account  with  the  farmstead  as 
a  whole  than  to  begin  the  detail  of  departmental  accounting.  The 
one  is  perfectly  reasonable,  and  requires  but  little  time.  The  other 
impractical  and  impossible  to  all  but  the  very,  very  few  on  the 
average  farm.  23 


HOW  TO  KEEP  FARM  ACCOUNTS. 


5.  THE  HOUSEHOLD  ACCOUNTS.— Now,  about  the 
Household  Accounts.  Are  there  any  reasons  why  they  shnuhl  be 
included  in  the  farm  ledger?  Have  you  ever  known  a  banker, 
merchant  or  manufacturer  to  include  them  in  the  books  of  his 
business?  Couldn't  he,  with  as  much  reason  for  so  doing,  include 
them  in  his  books  as  you  in  yours?  Some  argue,  that  on  the  farm 
the  household  expenses  are  so  closely  related  to  the  farmstead's 
earnings  that  they  must  be  included.  Very  true  as  far  as  it  goes, 
but  they  have  no  place  in  the  farm  ledger.  Elaborate  accounts 
have  been  shown  in  which  the  "Garden  Account"  was  charged 
for  all  labor,  seed  and  other  expenses  and  credited  with  the  dif- 
ferent vegetables  used  from  time  to  time  at  the  market  price.  Do 
not  do  this  nor  allow  any  more  detail  to  creep  into  your  books  of 
record  than  will  be  of  use  to  you.  If  you  think  about  this  a  little 
you  will  not  want  to.  As  for  "Garden''  or  household  accounts,  re- 
member that  when  you  hire  a  man  by  the  year  for  a  certain  sum, 
you  allow  him  in  addition  to  the  amount  agreed  on — pasture  for 
cow  and  a  garden  or  truck  patch.  You  figure  his  labor  worth  the 
wages  you  pay  him  plus  the  pasture  and  use  of  the  small  plot  of 
ground  for  his  garden.  And  this  is  the  best  plan  for  yourself  too. 
The  live-stock,  implements  and  buildings  are  a  part  of  the  farm- 
stead's equipment.  These,  together  with  the  farm,  enable  you  to 
produce  a  profit  from  your  labor  and  management.  And  for  this 
the  farm  owes  you  something  each  year.  You  msy  never  have 
figured  on  this  but  if  you  are  going  to  begin  an  account  with  your 
farm,  you  should  open  a  "Personal"  account  and  charge  yourself 
with  all  money  you  take  from  its  earnings  for  personal  or  house- 
hold use.  At  the  end  of  the  year  you  should  charge  the  "Labor" 
account  for  whatever  amount  yon  tliiiik  you've  earned,  making  your 
wages  large  enough  to  fully  meet  all  expenses  for  clothing,  groc- 
eries, church,  education,  relaxation  and  all  other  necessaries  to 
which  your  family  is  entitled.  ^Vhateve^  you  decide  that  you  and 
your  family  can  get  along  with — charge  to  your  "Personal"  ac- 
count and  keep  the  detail  of  househqld  accounts  out  of  the  farm 
ledger.  If  you  do  this,  the  same  as  any  other  business  man  would 
do,  your  bookkeeping  will  be  much  more  simple  and  satisfactory 
in  every  way. 

24 


HOIV  TO  KEEP  FARM  ACCOUNTS. 


6.  THE  POULTRY  ACCOUNT.— On  most  farms,  unless 
Poultry  is  made  a  specialty,  the  proceeds  is  considered  the  wife's 
to  do  with  as  she  sees  fit.  Sometimes  she  trades  the  eggs  out  at 
the  "store"  for  different  little  things  needed  round  about  the  house, 
and  sometimes  she  takes  the  cash,  but,  generally,  whatever  is  de- 
rived from  this  source  is  considered  hers  to  do  with  as  she  pleases. 
For  that  reason  Poultry  is  not  included  in  the  inventory  of  the 
illustration  given  in  the  following  pages.  But  if  the  owner  of  a 
farm  decides  to  have  an  account  with  "Poultry"  he  should  include 
it  in  his  inventory,  in  which  case  he  would  have  to  credit  the 
"Production"  account  with  all  proceeds  from  the  poultry — that  is 
treat  it  as  he  would  his  hogs,  sheep  or  cattle. 

7.  THE  INVENTORY.— What  has  been  said  about  it  being 
necessary  to  include  the  Poultry  in  the  inventory,  if  it  is  decided 
to  have  an  account  with  it  represented  in  the  ledger,  brings  to 
mind  the  importance  of  the  inventory.  If  you  have  read  Prof. 
Henry's  "Feeds  and  Feediug"  you  know  how  much  importance  he 
places  on  the  old  maxim  that  "The  eye  of  the  master  fattens  his 
cattle."  Now,  in  accounting  never  forget  the  importance  of  the 
inventory.  An  inventory  is  the  first  thing  to  take  before  any 
books  can  be  opened,  and  it  is  the  first  thing  to  take  before  they 
can  be  closed.  It  is  one  of  the  most  important  steps  in  accounting, 
but  even  as  important  as  it  is,  so  many  business  men  neglect  it, 
leaving  it  to  subordinates  who  do  not  fully  realize  how  vital  it  is 
to  the  success  of  the  business,  tliat  fully  95  per  cent,  of  the  failures 
ill  business  can  be  traced  directly  to  this  carelessness  or  ignorance. 
B}'  all  means  take  your  inventory  yourself  and  carefully.  Get 
ready  for  it  so  that  when  the  day  comes  you  can  take  it  without 
trouble  or  guess  work.  Remember  that  everything  should  be  in- 
cluded in  the  Inventory  that  is  used  in  the  maintaiuance  of  your 
farmstead  or  to  increase  its  products.  And  further,  that  the  value 
of  each  implement,  all  live-stock,  feed  and  products  on  hand  at 
the  time  it  is  taken  should  be  honestly  set  down.  Make  the  values 
just  what  you  could  get  in  the  open  market  for  all  except  the  im- 
plements, and  on  these  deduct  a  certain  percentage  each  year  for 
"wear  and  tear"  from  the  prices  paid.  Some  manufacturers  de- 
duct ten  per  cent.,  but  generally  this  is  too  much  for  farm  machin- 

25 


HOW  TO  KEEP  FARM  ACCOUNTS. 


ery  that  has  had  good  caip.  It  often  happens  that  the  old  vou 
liave  will  do  as  jjood  or  better  Avork  than  the  newer.  You  sec  it 
depends  altogether  on  the  "eve  of  the  master,"  for 

'  'Ne  who  by  the  Plough  would  thrive 
Must  either  hold  himself  or  drive." 

8.  THE  FILING  OF  BUSINESS  PAPERS.— And  when  you 
are  taking  your  inventory,  some  of  the  i)riees  paid  for  the  different 
implements,  for  the  harness  or  for  some  one  of  the  many  things 
about  the  farm  may  have  been  forgotten.  How  are  you  to  know 
and  get  at  the  correct  cost  in  such  cases?  Let  "a  place  for  every- 
thing and  everything  in  place"  be  your  rule  w-hen  handling  busi- 
ness paper  and  correspondence.  If  this  is  practiced  you  would 
only  have  to  turn  to  your  letter  file  and  find  the  original  cost  of 
any  implement  or  the  price  paid  for  all  feed  instantly.  A  transfer 
case  with  index  can  be  bought  at  any  stationers,  at  from  20  to  40 
cents.  In  it  can  be  tiled  for  instant  reference,  all  letters,  receipts, 
expense  bills  (freight  receipts)  Bills  of  Lading,  cancelled  checks, 
cancelled  notes  and  all  other  papei"  worth  kecjiing  for  future  con- 
tingencies. Begin  to  tile  all  papers  that  jtcrtain  to  ihe  business  of 
your  farmstead.  Put  everything  in  black  and  white.  Don't  de 
pend  on  memory  or  verbal  contracts  "for  verlial  contracts  feed  the 
courts"  and  one  of  you  may  die.  Keep  your  ledger  right  up  to 
date,  and  if  the  inevitable  comes,  as  it  must  come  some  day.  your 
family  will  not  be  "betw-een  tlie  (\v\\\  and  deep  blue  sea"  but  can 
take  hold  of  yoiir  temporal  accounts  understandingly  and  conduct 
the  farm  and  settle  your  business  affairs  without  litigation  or 
expense. 

9.  "WiJAT  ABOUT  TRANSACTIONS  THAT  OCCUR 
WHEN  I'M  NOT  AT  HOME?"— As  explained  in  paragraph  (5.  the 
book  upon  which  a  transaction  is  first  recorded  is  the  one  to  be 
produced  in  evidence  in  cases  of  litigation.  For  this  reason  it  is 
good  business  practice  to  enter  all  transactions  in  the  one  book 
you  keep  as  a  Ledger.  As  the  transactions  are  not  many  any  one 
month,  by  leaving  four  pages  for  each  month's  Cash  Account,  or 
forty-eight  pages  for  the  year,  enough  space  will  be  left  for  all 
transactions  which  are  necessary  to  enter  during  the  absence  of 
the  owner,  or  whoever  may  take  care  of  the  books.    If  pages  nine 

26 


HOW  TO  KEEP  FARM  ACCOUNTS. 


and  ten  are  used  for  the  April  cash,  eleven  and  twelve  will  be  set 
aside  for  memoranda  which  ought  to  include  all  events  worth 
putting  on  record.  By  this  method  if  you  were  not  at  home  and 
John  Jones  got  a  load  of  hay,  those  in  charge  in  your  absence 
would  turn  to  the  memoranda  page  for  whatever  month  it  hap- 
pened to  be  and  write,  if  in  April,  on  page  eleven:  "John  Jones, 
Hay  2640  lbs."  On  your  return,  you  would  naturally  turn  to  the 
books  and  finding  this  entry,  write  it  on  the  Cash  Account  proper 
for  that  day  and  month  as  it  should  be,  according  to  whether  it 
was  a  cash  or  time  transaction. 

10.  RED  INK  IN  THE  LEDGER.— Books,  of  course,  can 
be  kept  as  accurately'  without  the  use  of  red  ink  rulings  and  en- 
tries to  balance  accounts  as  they  can  with  them,  and  many  book- 
keepers claim  its  use  should  be  relegated  to  that  chapter  in  the 
ancient  history  of  accounting  when  all  cash  transactions  were 
journalized.  But  most  bookkeepers  continue  to  use  it  and  the  il- 
lustration given  herein  makes  use  of  it.  A  word  or  two  as  to 
what  these  red  ink  entries  mean  will  not  be  out  of  place. 

First  turn  to  the  Cash  Account  for  April  (plate  9).  Footing 
up  the  entries  in  black,  we  find  the  debit  side  amounts  to  |425.00 
more  than  the  credit  side,  that  is,  we  have  |425.00  on  band.  Being 
the  end  of  the  month  and  wishing  to  close  the  account  to  make  it 
balance  we  write  on  the  credit  side,  in  red  ink,  "Balance  1425.00 
(See  item  eg.)"  When  we  write  this,  we  really  agree  to  enter,  as 
soon  as  the  account  is  ruled  and  closed,  on  the  debit  or  opposite 
side,  the  amount  we  have  on  hand  in  black  ink.  Compare  item  eg 
on  plate  9  with  item  da  on  plate  12  and  you  will  see  just  what  is 
meant.  You  will  also  note  that  this  occurs  every  time  we  balance 
the  Cash  Account,  whether  daily,  weekly  or  monthly. 

If  you  will  now  turn  to  the  Ledger  accounts  you  will  see  that 
the  red  ink  entries  made  there  to  balance,  carry  forward  or  close 
an  account  at  the  end  of  the  year  never  affect  its  balance  because 
Tou  agree  when  you  balance,  carry  forward  or  dose  an  ac- 
count, that  you  will  bring  down  or  carry  forward  all  red  ink 
entries  to  the  opposite  side  of  the  Ledger  in  black  ink.  Hence, 
the  balance  of  the  Ledger  is  not  changed,  the  red  ink  simply  serv- 
ing to  show  that  such  an  account  has  been  balanced,  carried  for- 

27 


HOIV  TO  KEEP  FARM  ACCOUNTS. 


ward  or  closed  as  we  have  agreed  to  do  as  indicated  by  the  entry 
in  red. 

If  you  refer  to  Plate  60  you  will  see  we  agree  to  credit  Fox 
with  his  "Present  Worth"  at  the  time  the  books  are  closed.  (See 
entry  in  black  ink  of  |;12,703.G0  on  Plate  61.) 

Therefore,  all  red  ink  entries  are  either  brought  down  or  car- 
ried forward  to  the  opposite  of  the  Ledger  in  black  ink. 

11.  WHEN  SHALL  THE  FARMER  BEGIN  OR  OPEN 
HIS  LEDGER? — It  is  customary  among  merchants  and  manufac- 
turers to  close  their  books  at  least  once  a  year,  and  it  is  understood 
by  them  that  the  first  of  the  year,  as  far  as  the  records  of  the  busi- 
ness are  concerned,  is  at  the  time  the  time  the  books  are  closed. 
In  commercial  pursuits,  January  1st  is  usually  selected,  but  on  the 
farm,  this  must  be  consideredwhether  it  isn't  best  to  select  a  time 
when  the  live-stock  and  other  products  are  at  their  minimum? 
For  instance,  among  farmers  generally  in  the  northern  half  of  the 
United  States  the  first  of  March  or  April  finds  most  of  them  with 
less  stock  and  produce  on  hand  than  at  any  other  time  of  the 
year,  and  the  active  labor  of  putting  in  the  oats,  barley  and  other 
spring  crops  barely  begun.  Any  date  will  do,  and  the  farmer  must 
decide  for  himself  what  time  of  the  year  suits  his  location,  rota- 
tion and  farm  management  best. 


28 


Part  Two 


PRINCIPLES  AND  DEFINITIONS 


12.  PRINCIPLES  AND  DEFINITIONS.  At  the  begin- 
ing  of  every  business,  except  farming,  some  system  of  accounting 
from  which  its  owner  can  form  an  estimate  of  its  development  at 
any  time,  is  thought  absolutely  necessary.  In  farming  it  is  the 
last.  And,  although  the  keeping  of  accounts  must  always  be 
incidental  to  the  business  itself,  because  it  results  from  it,  yet 
it  is  such  ail  important  essential  in  securing  the  greatest  profit 
from  the  farm  that  every  farmer  should  keep  an  account  with 
his  farmstead,  if  ambitious  to  obtain  the  most  profitable  re- 
turns from  his  management.  For  after  all,  profit  is  the  incentive 
to  all  business  activity.  This  is  just  as  true  on  the  farm  as  it  is 
in  any  branch  of  commerce  or  manufacturing.  It's  the  profit  we 
think  of  that  spurs  us  on  to  grow  better  grain,  or  fruit,  or  to 
raise  finer  stock  than  our  neighbors.  And  then  when  we've  sold 
the  stock  we've  raised  aud  the  grain  or  fruit  we've  grown  and 
have  pocketed  the  proceeds,  we've  completed  a  business  exchange 
or  transaction  that  ought  to  be  put  on  record,  the  recording  of 
which  is  nothing  more  or  less  than  bookkeeping,  hence: 

13.  BOOKKEEPING  is  the  art  of  recording  business  trans- 
actions distinctly  and  systematically  so  as  to  show  the  money 
received,  disposed  of  and  on  hand,  the  credits  given,  and  the 
assets,  liabilities,  and  general  status  of  the  business,  person  or 
tirm.  There  are  two  methods  of  keeping  books  known  as  Single 
aud  Double-  entry. 

14.  IN  SINGLE  ENTRY  there  is  but  one  debit  or  one 
credit  to  a  transaction,  and  only  personal  accounts  carried  to 
the  Ledger.  It  is  therefore  imperfect  and  iucomplete  and  never 
used  in  modern  business,  because  accounting  that  isn't  accurate 
is  worse  than  noue  at  all.     Single-entry  affords  hardly  half-a-loaf 

at  best,  but 

31 


HOW  TO  KEEP  FARM  ACCOUNTS. 


15.  DOUBLE  ENTRY  BOOKKEEPING  furnishes  a  com- 
plete business  record  iu  which  every  transaction  is  made  to  ap- 
pear on  the  Ledfjer  as  both  debtor  and  creditor  bj-  observance  of 
the  governinji;  principles,  that,  in  every  instance  the  thinp  ob- 
tained is  debtor  to  the  thing  given,  and  the  thing  given  is  creditor 
of  the  thing  obtained,  by  means  of  which  a  correct  Ledger  bal- 
ance is  always  at  command.  In  simple  English  it  meaus  that, 
for  every  debit  there  must  be  a  corresponding  credit,  and  vice- 
versa.  That's  the  whole  thing  in  a  nutshell,  and  it  is  by  using 
this  principle  for  a  foundation  that  the  entire  structure  of  ac- 
counts is  built. 

16.  ESSENTIAL  BOOKS  OF  RECORD.— In  double-entry, 
the  Journal,  Cash  Book  and  Ledger  are  the  principal  books,  al- 
though other  books  known  as  Auxiliary  books  are  added  for  con- 
venience. Nowadays  the  Cash  Book  and  Ledger  are  the  principal 
books  and  it  is  perhaps  advisable  to  have  a  separate  book  for 
each  on  farms  extensive  enough  to  require  the  services  of  a  book- 
keeper, but  for  all  farmers  who  must  keep  their  own  books,  the 
system  shown  in  the  pages  which  fullow  is  the  most  simple  and 
convenient. 

17.  Books  of  Original  Entry  are  those  upon  which  the  trans- 
action is  first  recorded.  In  case  of  litigation  the  book  of  original 
entry,  whatever  that  book  may  be,  is  the  one  required  to  be  pro- 
duced in  evidence. 

18.  THE  LEDGER  is  the  book  of  accounts,  and  contains  a 
final  summing  up  of  all  the  accounts. 

19.  THE  JOURNAL  OR  DAY  BOOK.— Formerly  this  book 
was  used  to  enter  all  transactions  as  they  occuiTed  from  day  to 
day.  Nowadays  the  best  bookkeeping  is  that  which  tells  every 
detail  with  the  least  miuutia,  and  the  tendency  of  the  times  is 
to  reduce  the  number  of  books  and  entries  as  much  as  possible, 
hence,  the  Journal  or  Day  Book  is  seldom  used,  the  Cash  Book 
answering  every  purpose. 

20.  THE  CASH  BOOK  is  the  book  used  to  detail  the  cash 
transactions  aud  should  always  be  a  book  of  original  entry.  Ou 
the  farm  it  should  answer  the  purpose,  and  take  the  place  of  the 

32 


HOIV  TO  KEEP  FARM  ACCOUNTS. 


Day  Book  or  Journal.  Then  by  combining  if  with  tlie  Ledger,  as 
explained  later  on,  the  farmer  will  have  to  keep  but  one  book  of 
record  which  will  apjieal  to  all  practical  men.  One  volume  a 
year — the  original  book  of  entry  and  Ledger,  one  and  the  same. 
In  cases  of  dis])ute  or  litigation,  if  called  upon  to  act  as  Guardian 
or  Administrator,  if  ever  under  any  circumstances  called  upon 
to  produce  the  book  in  court,  every  transa(;tion  is  there  convenient 
and  complete. 

21.  ACCOUNT. — An  account  is  a  recorded  statement  of 
debits  and  credits,  of  receipts  and  expenditures,  or  of  business 
transactions,  and  are  of  three  kinds.  Real,  Keprosentative  and 
Personal. 

22.  \li:\l.  ACCOUNTS  are  those  which  show  either  a  re- 
source or  a  liability  in  continuous  record,  sucli  as  cash,  uotes  and 
personal  accounts. 

23.  KEPRESENTATIVE  ACCOUNTS  are  those  which 
show  the  earning  activities  of  a  business,  such  as  interest,  dis- 
count, expense  and  property. 

24.  PERSONAL  ACCOUNTS  are  those  opened  with  per- 
sons who  from  time  to  time  become  indebted  to  us  or  we  to  them. 

25.  LAWS  OF  DERIT  AND  CREDIT.— As  explained  in 
defining  double  entry  Bookkeeping,  every  transaction  is  made  to 
appear  in  the  Ledger  as  both  Debtor  and  Creditor,  hence  every 
account  is  affected  in  two  ways — by  debits  and  crcnlits.  From 
this  you  will  understand  every  account  has  two  sides,  the  Debit 
and  the  Credit.  The  prin(ii)Ies  which  govern  thcin  aic  unchange- 
able and  are  as  follows: 


DEBIT   SIDE 


ACCOUNX 


CREDIT   SIDE 


On  this  side  we  enter  what  comes  into 
the  business  or  what  costs  value. 


On  this  side  we  enter  what  gois  out 
of  the  business  or  what  produces  value. 


Therefore,  you  should  memorize  the  following: 


Always   debit  what  we    receive  and 
who  or  what  costs  us  value. 


Always  credit  what  we  give  and  who 
or  what  produces  value. 


You  must  thoroughly  understand  that  every  transaction  that 
can  possibly  occur  is  governed  in  a  bookkeeping  sense  by  one  or 
the  other  of  the  two  principles  given  above. 


33 


Part    Three 


"Let  us  forge  out  n  system  that  will 
meet  our  requirements  as  producers 
and  svAt  our  ronditions." — Wilson. 


THE  FARM  LEDGER 


26.  A  modern  s.vstom  of  accounting  is  one  that  automatically 
furnishes  statistics  of  a  business  in  such  foi>ni  as  to  be  readily  re- 
ferred to  by  tlie  owner,  and  furnish  him  a  safe  guide  for  its  man- 
agement along  prosperous  lines.  On  a  farm  the  books  should  be 
so  kept  that  all  questions  regarding  either  the  tinances  of  the 
farmstead  or  its  owner  can  be  answered  without  looking  up  data 
in  ancient  files  or  other  books  of  record  than  the  Ledger. 
As  for  the  Ledger,  there  are  nearly  as  many  kinds  of  rulings  now- 
adays as  there  are  businesses.  This  results  from  a  desire  to  har- 
monize the  books  with  the  business,  and  when  attained,  insures 
accuracy  and  a  great  saving  of  labor.  The  farmer  should  adapt 
his  bookkeeping  to  suit  his  conditions,  and  the  best  system  for  him 
is  one  that  differs  from  the  usual  method  by  dispensing  with  sep- 
arate Day  Book  and  Cash  Book,  using  one  book  only — the  Ledger 
—which,  if  rightly  kept,  will  answer  every  purpose. 

27.  SIZE  OF  LEDGEK.— All  that  is  required  is  one  large 
enough  to  admit  of  opening  all  the  accounts  necessary  to  properly 
care  for  the  rotation  followed  on  the  farmstead.  It  is  best  to  use 
one  book  each  year.  It  is  much  handier  when  wanting  to  refer  to 
the  records  of  any  former  year  or  when  comparing  one  year  with 
another. 

28.  RULING. — It  should  have  the  regular  single  entry  rul- 
ing, of  which  the  following  is  an  example: 


EXPLANATION  Or  COLUMN 


PAGE 

OP 
CASH 
BOOK 

OR 

Lteacn 


Blank  books  ruled  like  the  above  can  be  bought  at  most  stores 
in  every  village,  the  cost  running  from  seventy-five  cents  up.  ac- 
coT'ding  to  size,  quality  of  paper  and  binding. 


HOJV  TO  KEEP  FARM  ACCOUNTS. 


29.  INDEX. — These  books  are  made  with  and  without  in- 
dexes; but  when  used  as  a  book  of  record  on  the  farm  they  should 
have  the  inde.x.  Tlieu  it  can't  be  lost  or  mislaid  and  is  always  at 
hand,  ready  for  use. 

30.  THE  ARRANGEMENT  OF  ACCOUNTS.— It  is  always 
advisable  in  classifying  the  accounts  for  the  average  farm,  that 
the  first  six  pages  be  left  for  the  aiuiual  inventory.  Then  an  al- 
lowance of  forty-eight  pages  for  the  Cash  account  for  the  twelve 
months.  This  allowance  of  fortj-eight  pages  for  the  Cash  account 
during  the  year  insures  enough  space  to  write  any  iiiciuoranda 
<luring  the  month,  which  may  be  worth  noting  in  permanent  form, 
that  is,  if  pages  nine  and  ten  are  used  for  the  June  Cash,  pages 
eleven  and  twelve  would  be  left  blank  for  memoranda  and  tiie  July 
Cash  entered  on  pages  thirteen  and  fourteen,  and  so  on.  Then  a 
few  pages  siiould  be  set  apart  to  record  tiie  mating  and  date  of 
birth  of  all  live-stock  and  this  should  be  indexed  the  same  as  any 
account  in  the  Ledger  so  that  it  may  be  quickly  found. 

31.  These  few  pages  should  be  all  that  is  necessary  on  most 
farms,  but  if  the  breeding  and  sale  of  pure-bred  stock  of  any  kind 
is  made  a  specialty,  it  is  altogether  better  to  use  a  record  made  on 
purpose  for  breeders.  The  balance  i»f  the  pages  in  the  Ledger 
should  be  divided  to  suit  the  accounts  one  has  or  may  wisii  to 
keep,  except,  that  not  less  than  ten  pages  should  be  left  t.t  the 
end  of  the  book  for  a  recapitulation  or  annual  statement  »wi  the 
farmstead's  earnings  and  expenses  for  the  year. 

32.  Csing  tlie  above  for  a  basis  the  pages  necessary,  would 
on  most  farms  be  about  100  but  the  size  of  the  Ledger  used  must 
of  course  be  governed  by  the  size  of  the  farm  and  the  acounts  one 
would   wish  to  open. 


40 


Part  Four 


"  Illustration  is  the  basis  of  successful 
teaching."— Horace  Mann. 


THE  ILLUSTRATION 


33.  To  better  illustrate  how  the  botiks  are  first  opened  or 
begun,  let  us  imagine  some  person,  say  one  -Toliii  Fox,  wishes  to 
begin  a  simple  set  of  accounts  with  his  farmstead.  Having  de- 
cided on  this,  the  first  thing  he  must  do  is  to  take  an  inventory 
and  an 

34.  IXVENTOKY  on  the  farm  should  be  an  itemized  list  of 
everything  used  to  increase  its  profits  or  maintain  it.  It  must  in- 
clude all  Live-stock,  Feed,  Implements,  and  all  products  on  hand, 
such  as  Wheat,  Corn.  Barley,  Eye,  Ha.v.  Potatoes,  etc,  etc.,  with 
the  quantity  and  number  of  each  figured  at  the  market  price  the 
day  it  is  taken. 

This  Fox  takes  and  as  he  has  no  time  for  "fuss  and  feathers" 
and  doesn't  want  to  open  a  separate  account  for  each  jiroduct,  he 
includes  under  the  head  of  "Production"  all  his  live-stock  and  the 
produce  grown  by  him.     (Kefer  to  155.) 

Under  Feed,  he  enters  only  that  which  he  has  bought,  such  as 
Bran,  Middlings,  Oats,  etc.  Plad  he  grown  the  Oats  he  would  have 
to  enter  it  under  '"Production"  but  whatever  he  buys  to  feed  must 
be  inventoried  as  "Feed"  and  at  the  prices  paid  for  it. 

The  inventory  having  been  taken  we  give  it  in  full  as  follows: 

35. — Inventory  of  Clovermead  Farm,  March  31, 1901. 

PRODUCTION.  FEED. 

Bay  Team  Jack  and  Jim $  160.00  75  lbs.  Linseed  Meal  at  $24.00..!         .go 

Bay  Mare   Queen 7S0o           ^^  ton  Bran  at  $15.00 1.87 

Black   Mare   Bess 60.00           ^^4  ton  Middlings  at  $19.00 14.25 

Chestnut   Mare  June i7S-00           27  bushels  Oats  at  32c 8.84 

Two  Cows  at  $35.00 70.00                                                                   

20  Stock   Hogs  at  $5.00 100.00  $    25.86 

15  Poland  China  Sows  at  $12. .  180.00                                                                   


IMPLEMENTS. 


I   Berkshire  Boar 35-00 

100  Shropshire  Ewes  at  $4.00. . .  400.00 

I    Shropshire  Ram 50.00  One  Wagon $  60.00 

I    Shropshire   Ram 30.00  One  Farmers'    Handy   Wagon..  3900 

I    Shropshire  Ram 20.00  One  Surrey 120.00 

913  bushels  Corn  at  35c 319-55  One  Buggy 80.00 

9  bushels  Potatoes  at  30c....  2.70  One  Spring  Tooth  Harrow 14.00 


11^  tons  Clover  Hay  at  $6.00. .       69.00 

87  bushels  Seed  Com  at  60c. .. .      52.20  Amount   up $31300 

$1398.45 


HOH-  TO  KEEP  FARM  ACCOUNTS. 


Brought   lip $ 

,y3-oo 

One  Adjustable    Harrow 

12.00 

One  Roller 

19.00 

Two   Plows  at  $15.00 

30.00 

One  Cultivator,   "Planet   Jr."... 

40.00 

One  Weeder 

12.00 

One  Corn  Planter 

27.00 

One  Grain  Drill 

75-00 

One  Mower 

40.00 

One  Cahoon  Seeder 

3.00 

One  Tedder 

22.00 

One  Corn  Sheller      

5.00 

20. CO 

One  Hav  Rake 

One  Hav  &  Slock  Rack 

12.00 

Two  Set?  Harness  at  $36.00. . . . 

72.00 

One  Set  Light  Harness 

20.00 

Also  A.xes,  Forks,   Log  Chains, 

Three  Horse  Eveners.  Wheel- 

barrow,  and   other   miscellan- 

eous tools  about  the  place .... 

10.00 

Less    25%    di.^count    for    "wear 
and  tear"'  of  five  years'  use.  ..     183.00 

$  549- 00 

One  Binder   5  100.00 

One  Corn  Harvester 100.00 


$  200.00 
Less   5%   for  one  year's  depre- 
ciation         10.00 


$  190. CO 


RECAPITULATION. 

Production  $1398.45 

Feed   25.86 

Implements 739. 00 


$  732.00 


Total $2163.31 


36.  IN  VENTOHV  \A  IJ'ATION.— A.s  we  liave  already  stat- 
ed Fox  values  liis  live-slock  ;it  wiiat  it  would  hriiiL;.  if  sold  the  dav 
he  takes  bis  inventorv  and  lids  is  also  true  of  tlu-  jtroduce  lie  lias 
jrrown;  but  tlie  I'eed  lie  niusT  tiiiure  at  wli«t  it  cost  him.  I'rnni 
his  implements  he  deducts  25  per  ceut.  for  "wear  and  tear"  of  five 
years  usajre.  As  the  Kinder  and  Corn  Harvester  were  bought  in 
1900  he  only  deducts  5  per  cent,  froin  1  hem-  -both  itradically  beiu;; 
as  jiood  as  new.  Some  manufjuiiiiers  deduct  10  per  cent  an- 
nually for  the  depreciation  of  their  machinery  but  when  jrood  care 
is  taken  of  farm  imiplcments  tlu'i'e  is  sctircely  need  for  sucdi  a 
deduction.  The  owner  must  of  course  decide  for  himself  what 
the  depreciation  amounts  to. 

37.  STATEMENT  OF  RESOUKCES  AND  LIAKIIJTIES.- 
Fox  now  has  his  inventory  taken.  He  knows  what  he  has  on  his 
farm  and  that  if  sold  to(hiy  it  would  nninunt  to  •?2.1(!o.:^l.  Howeve'". 
before  he  can  bejiin  his  books  he  uiusi  know  not  only  this;  but  tht- 
exact  amount  of  everythinj;  else  he  owns,  what  he  owes  and  also 
what  is  owinfi  him.  The  easiest  way  to  do  this,  is  to  make  a  state- 
ment of  his  IJesources  (what  he  ha.s)  and  Liabilities  (what  he  owes. 
To  jjet  at  this,  his  farm  known  as"('lovermead"  consisting:  of  120 
acres  cost  him  f^O.OO  an  acre.  He  still  owes  on  it  J;2.0(t().(Mt  which 
is  in  four  notes  of  f.'^tMI.OO  each,  payable  annually  with  interest  at 
♦J  per  cent.     These  notes  are  secured  by  Mortpajje,  and  an*  held  by 

46 


HOl-y  TO  KEEP  FARM  ACCOUNTS. 


a  local  hank — the  I'iist   National.     He  has  also  ?41.'{.00  cash  on 
liani]  and  a  note  of  fTO.OtI  in  his  favor  which  is  (inc  .Inly  15,  1901. 

38.  Iteniizinji-  the  above,  he  places  under  "llesources"  (1) 
the  cash  value  of  his  farm.  (2)  rroductiou  (see  inventory)  which 
represents  his  live-stock  and  the  products  of  his  farm  on  hand  ar 
this  tim/e.  (3)  Implements  (see  inventory).  (4)  "Feed"  (see  in- 
ventory) and  by  "IVed"  he  means  what  he  has  had  to  buy — not 
that  which  he  has  urowu.  (5)  Bills  Keceivable  (n(>tes  owinjr  him) 
and  (())  the  Cash  he  has  on  hand.  These  items  are  all  "Resources" 
because  if  necessary  he  could  sell  ihciu  for  the  amount  set  aside 
each  and  thus  realize  that  much  cash  for  them — hence,  a  resource. 

39.  Under  "Liabilities."  he  |)laces  Bills  Paj-able  (notes  he 
owes).  To  better  understand  this,  let  us  set  down  these  items  and 
amounts  under  their  respe(  tlve  heads,  so  that  it  Avill  be  perfectly 
clear. 

RESOURCES.  LIABILITIES. 


(i)  Clovermead  Farm 

(2)   Production    (Inventory) 

C^)   Implements    (Inventory) 

$  9600 

1398 

739 

00 

4S 
00 

Bills     Payable 
owes) 

Net    Worth 

(Notes    he 

$  2000 
10246 

00 
31 

(4)   Feed    (Inventory) 

25 

86 

(5)   Bill    Receivable    (Notes 
owing   him 

70 

00 

(6)   Cash    (Money   on   hand) 

413 

00 

$12246 

31 

$12246 

31 

40.  Xow.  in  looking  at  the  statement  above  you  will  see  one 
item  under  "Liabiliries"  about  which  nothini;'  has  yet  been  said. 
It  is  Net  Worth,  and  is  simply  this:  -I'ox's  total  Resources  anionni 
to  $12.24*1. HI.  'I'akiiiu  fruiii  ii  I  he  total  anionni  of  his  debts 
(12.000.00)  there  remains  tin-  difference  of  ?10.240.81.  or  his  Net 
Worth.  The  forc^oinji  is  what  lN>x  must  know  before  he  can  open 
his  Led;.Mr.  It  is  what  you  nrust  al.so  know  before  you  can  open 
an  account  with  your  farmst(»ad  intelli;:ently. 

41.  I'ox  niRisi  next  make  the  opciiint;  entries  in  his  book  of 
record  and  as  he  is  a  practical  farmer,  he  wants  his  accounts  ti> 

47 


HOir  TO  KEEP  FARM  ACCOUNTS. 


be  as  simple  as  cau  be  and  ret  be  accurate.  With  this  in  view, 
he  decides  to  have  as  few  accounts  in  his  Ledger  as  possible — to 
use  but  one  book  of  record — setting  aside  the  first  six  pages  for 
the  inventory,  the  next  forty-eight  pages  for  the  Gash  account  for 
the  year,  and  the  balance  of  the  book  for  his  accounts  in  the 
Ledger  proper.  But  before  any  accounts  or  entries  can  be  made 
in  the  Ledger,  they  must  appear  on  the  Cash  Book  and  the 

42.  (,'ASH  BOOK  in  its  original  form  was  simply  the  cash 
account.  It  was  debited  for  the  cash  received  and  credited  for 
all  cash  paid  out — the  difference  between  the  debit  and  credit 
sides  showing  exact  amount  of  cash  on  hand.  But  on  the  farm 
the  Cash  Book  must  answer  for  a  Day  Book  or  Journal  as  well, 
and  all  transactions  appear  in  it.  As  explained  before,  in  double- 
entry  bookkeeping  all  accounts  have  two  sides — a  debit  and  a 
credit.  The  left-hand  side  is  the  debit  side  and  the  right-hand  is 
always  the  credit  «ide.  Remember,  then,  that  he  following  rules 
are  absolute  for  the  Cash  Book. 


LEFT-HAND  OR  DEBIT  SIDE. 

On   this   side   enter   all   cash   you   re- 
ceive. 


RIGHT-HAND  OR  CREDIT  SIDE. 
On  this   side   enter  all   cash  you   pay 

out. 


43.  Now  the  sides  of  the  blank  book  that  you  are  going  to 
use  as  a  Farm  Ledger,  are  ruled  exactly  alike  and  you  will  see  by 
referring  to  the  example  below  that  the  first  column  is  for  the  date, 
the  second  for  the  page  of  the  Ledger  to  which  the  entrA"  must  be 
posted.  The  third  is  for  explanation  in  which  you  should  write  a 
complete  history  of  the  transaction  at  the  time  it  takes  place.  This 
should  always  be  writen  out  fully  so  that  if  at  any  time  later  a 
question  arise  as  to  the  validity  of  an  account,  the  details  given 
in  this  column  will  remove  all  doubt  as  to  what  it  was.  when  it 
took  place,  etc.  The  Dollars  and  Cents  column  at  the  extreme 
right  of  each  page  are  those  in  which  you  set  down  the  amount  of 
the  transaction.  The  correct  ruling  for  a  Farm  Ledger  is  shown 
below,  which  note:  ,    /• 

J  ICi. 


THIS 

TM1»       1 

ron 

•  Pace    1 

TMt 

ro* 

D»TI 

•.iceiR 

PACK 

THIS  THK    CXPLANJITION    COLUMM 


ooLiAna     ctars 


Fox  is  now  ready  to  make  his  first  entry  and  the 

4« 


HOW  TO  KEEP  FARM  ACCOUNTS. 


44.  FIRST  ENTRY  is  to  give  the  owner  (Fox)  credit  for  his 
investment.  This  is  always  the  first  entry  when  the  boolcs  are 
opened.  We  find  his  investment  as  follows:  The  statement  of 
his  Resources  and  Liabilities  shows  his  net  worth  to  be  f  10,246.31 
of  which  $413.00  is  in  cash  (money  on  hand).  By  deducting  his 
cash  on  hand  from  his  Net  Worth  we  have  $9,833.31  which  repre- 
sents the  net  cash  value  of  his  Farm,  Production,  Feed,  Imple- 
ments and  Bills  Receivable.  Therefore,  we  credit  J.  Fox  (or  the 
owner)  by  entering  on  the  debit  side  of  the  Cash  Book  |9,833.31j 
the  net  cash  value  of  his  investment  and  the  $413.00  cash  on  hand 
(Refer  to  Plate  8,  item  da).     Also  turn  to  paragraph  112. 

45.  THE  SECOND  ENTRY  is  to  credit  Bills  Payable  for 
$2,000.00,  the  amount  of  notes  Fox  is  owing  to  the  First  National 
Bank.     (Refer  to  Plate  8,  item  db.)     Also  refer  to  paragraph  138. 

You  are  wondering  why  we  Credit  Fox  and  Bills  Payable, 
when  we  enter  the«e  items  on  the  debit  side  of  the  Cash  Book. 
The  reason  is  this:  The  Cash  Book  is  the  cash  account.  We 
charge  (debit)  it  for  all  cash  we  receive  and  credit  it  for  all  we  pay 
out.  But  the  Cash  Book  on  the  farm  must  take  the  place  of  the 
Journal  and  when  we  open  (begin)  the  books,  we  must  of  course 
credit  Fox  (the  owner)  for  the  amount  of  money  he  has  invested. 
He  now  has  $9,833.31  in  land,  live-stock,  implemeats  and  $413.00 
in  cash,  all  of  •which  he  is  using  in  his  business  of  farming.  He 
must  open  an  account  in  the  Ledger  that  will  represent  his  interest 
in  his  business.  Hence,  he  must  be  credited  for  the  amount  in- 
vested and  the  cash  he  is  using. 

46.  WE  NEXT  DEBIT  the  following  accounts  with  the 
amount  of  each  as  shown  by  the  inventory.  Clovermead  Farm 
(Plate  9,  item  ca.  and  refer  to  118),  Production  (Plate  9,  item  cb. 
and  refer  to  156),  Implements  (Plate  9,  item  cc.  and  refer  to  172), 
Feed  (Plate  9,  item  cd.  and  refer  to  167),  Bills  Receivable  (Plate  9, 
item  ce.  and  refer  to  144).  These  items  are  those  that  Fox  has  his 
money  invested  in.  And  as  we  have  previously  learned  that  there 
must  be  a  debit  for  every  credit,  we  debit  each  for  the  amount 
invested,  because  we  have  given  Fox  credit  for  them.     If  they 

49 


HOIV  TO  KEEP  FARM  ACCOUNTS. 


Iiavi'  been  entered  correctly  the  Ca.sL  Book  should  now  balance 
as  follows: 

DEBIT    SIDE.  CREDIT  SIDE. 


Clovermead   Farm 

$  9600 

00 

J.  Fox — Investment 

$9833 

31 

Production    (Inventory) 

1398 

45 

r.   Fox— Cash 

413 

00 

Implements    (Inventory) 

7^9 

00    ' 

Bills   Payable 

2000I00 

Feed   (Inventory) 

J" 

.^1 

Bills    Receivable 

;■' 

r_)0 

Balance 

413 

00 

i 
1 

1 

1 

$12246131    1 

$12246 

31 

47.  Now  that  Fox  has  his  books  begun,  somebody  or  some- 
thiiiii-  must  be  debited  for  evcrythini;  brought  on  the  farm,  and 
somebody  or  something  credited  for  all  that  is  sold  or  taken  from 
the  farm.  By  doing  this  he  will  know  at  any  time  the  exact 
amount  of  cash  he  has  on  hand  and  the  true  condition  of  every 
.account  he  has  in  the  Ledger. 

NOTE: — For  ready  reference  each  entry  on  the  Debit  side  of  all  ac- 
xounts  in  both  Casli  Book  and  Ledger  is  indicated  by  the  letter  "d"  and 
foUozv  each  other  in  alphabetical  order,  thus:  The  entry  giving  Fox  credit 
for  his  investment  is  Plate  8,  item  da.,  and  that  of  Bills  Payable  is  Plate  S. 
item  db.  The  entries  on  the  Credit  side  are  indicated  by  using  the  letter 
"C"  to  designate  the  credit  side  as  Clovermead  Farm :  Plate  0,  item  ca. 
Production,  Plate  p,  item  cb.,  etc.,  etc. 


50 


EIRRATA 


On  page  50  the  matter  illustrating  how  the  Cash  Book  bal- 
anced when  Fox  made  his  opening  entries,  was,  through  error, 
transposed,  and  should  read  as  follows: 


DEBIT  SIDE. 


CREDIT  SIDE. 


J.  Fox— lu vestment 

f  9833 

31 

Clovermead  Farm 

$  9600 

00 

J    Fox— Cash 

413 

00 

Production  ( Inventory ) 

•398 

45 

Bills  Payable 

2000 

00 

Implements  (Inventory) 

739 

00 

Feed  (Inventory) 

25 

S6 

Bills  Receivable 

70 

00 

Balance 

413 

00 

$122)6 

31 

JS12246 

31 

HOIV  TO  KEEP  FARM  ACCOUNTS. 


odr        ^Mv//^^/  ^^a^        a^f 

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/c>^C 

i^' 

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^S 

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— 

TRANSACTIONS  FOR  APRIL,  1901. 
Uavin*;  opened  the  Cash  Book  by  entering  the  items  shown 
in   his  statement  of  Resources  and   Liabilities  in  the  preceding 
chapter,  the  transactions  common  to  the  rotation  practiced  by 
Fox  follows. 

APRIL  8. 

He  received  a  money-order  of  $isoo  from  Wm.   George,  of  Troy,  Ohio,  for   15 
bushels  of  Seed  Corn.     Freight   C.  H  &  D.  R.  R. 

48.  It  isn't  practical  to  open  accounts  with  each  individual 
who  may  buy  seed  or  other  ])roducts  from  the  farm,  so  Fo.x  credits 
all  sales  to  Production,  and  Mill  oix-n  an  account  in  I  lie  i.,ed,<rer 
under  that  head.  Refer  to  Plate  8,  item  dc.  and  note  that  full 
particulars  of  the  transaction  are  jiiven.  This  (Mitry  should  be 
made  immediately  after  the  order  is  received.  Then  when  he  fills 
and  ships  it,  he  checks  it,  thus:  4-10,  as  shown  on  the  plate.  Note 
that  the  date  the  order  is  receiA'ed  is  in  fii-st  column,  and  the  full 
explanation  in  third  column,  with  the  amount  in  the  dollars 
and  cents  column.     The  figures  09  in  second  column  is  the  Ledger 

52 


HOW  TO  KEEP  FARM  ACCOUNTS. 


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page  to  which  the  entry  is  posted,  and  in  this  book,  will  mean  the 
number  of  the  Plate.  In  actual  bookkeeping  this  second  column 
of  the  Cash  Book  is  used  for  the  Ledger  page. 

APRIL  9. 
J.  Green,  of  Huntington,  Ind.,  wants  I2  bushels  of  Seed  Corn  shipped  by  Wabash 
freight  and  encloses  a  draft  for  $i2.oo  to  pay  for  it. 

49.  This  transaction  — item;  dd — is  the  same  as  item  do 
which  immediately  precedes  it.  Fox  must  debit  Cash  for  all 
money  received  whether  it  is  in  currency,  post-office  or  express 
money  orders,  drafts  or  checks.  Always  mention  in  what  form 
it  is  received. 

APRIL  25. 
He  pays  Ed.  Wise  $15.00  for  12  days  labor  at  $1.25. 

50.  To  open  au  account  with  each  per-son  one  would  have 


NOTE: — A  Star  *  when  found  before  an  entry  on  either  Cash  Book 
or  Ledger  (see  plate  above  item  *  eg)  indicates  that  such  entry  should  be 
made  in  red  ink.     For  reason  zvhy  refer  to  paragraph  to. 

53 


HOIV  TO  KEEP  FARM  ACCOUNTS. 


to  Lave  as  extra  licl])  on  llic  fiinii  involves  too  inueh  detail,  so  FdX 
fhan.iies  "Labor"  for  the  aiiioiiiit  (if  Ibis  iransactiou,  because  he 
wants  fo  know  what  he  ]>a\s  fm-  liclp  dui-ini;  the  year,  and  there- 
fore, nnist  open  an  ar<()Uiil  Un-  ••Liihor"  in  the  Ledger  to  which 
all  money  paid  for  lii'i])  shonld  he  charged.  Kefer  to  Plate  9, 
item  cf.     Kefer  to  183. 

APRIL  30. 
He  balances  liis  cash  account  for  April  and  finds  $425.00  on  hand. 

51.  It  is  now  the  end  of  the  month  and  he  balances  his  cash. 
Balancinji  the  cash  is  simply  footing  the  two  sides  of  the  account 
and  the  difference  between  them  shonld  be  exactly  what  you  have 
on  hand.  The  ditl'eience  for  A])ril,  Fox  finds  is  ^42.5.00.  which  is 
the  amount  he  has  on  hand.  He  now  closes  the  account  for  April 
by  writing  in  red  ink: — the  date,  the  word  Balance,  and  ihe 
amount  $425.00  on  the  credit  side — see  item  eg.  He  then  rules 
the  (dosing  lines  in  red  ink  and  writes  between  them  in  black  ink 
the  totals  |12,273.31.     (See  Plate  8  and  9,  item  df  and  ch.) 

52.  WHEN  CA8IT  IS  ON'EK  OH  SHOKT.— Every  one  makes 
mistakes  and  should  one  occur,  such  as  an  error  in  making  change 
or  in  paying  an  account  and  omitting  to  charge  it.  and  you  cannot 
find  it  after  exhausting  evei"y  effort,  the  Cash  Book  can  be  made 
to  balance  as  follows:  If  your  cash  is  over — having  more  than 
you  should  as  shown  by  the  Cash  Book,  credit  this  diil'erence  to 
the  Production  account  by  writing  on  the  debit  side  of  the  Cash 
Book  "Production — Cash  Over"  which  makes  it  balance.  If  short 
— if  you  have  less  casli  tlian  y()u  should  have  according  to  the 
Cash  Book,  charge  it  to  yoursidf,  writing  on  the  cnnlit  side  of 
the  Cash  Book,  "J.  Fox — Cash  short"  for  the  amount  of  difference. 
In  case  you  locate  the  error  later,  debit  or  credit  the  difference  to 
the  proper  account  and  debit  or  credit  yourstMf  or  Production 
as  it  may  have  been  entered  at  the  time  you  could  not  locate  the 
error. 

53.  POSTING  THE  CASH  BOOK.— Every  entry  appearing 
in  the  Cash  Book  must  be  ])osted  or  transferred  to  some  account 
in  the  Ledger.     The  second  c(dumn  is  used  to  enter  the  page  of 

54 


HOIV  TO  KEEP  FARM  ACCOUNTS. 


the  Ledfjer  to  which  the  entry  is  transferred.  On  Plate  S,  item  da, 
yon  will  note  the  Ledger  page  is  61.  Turn  to  Plate  61,  item  da, 
and  study  the  entry.  Observe  that  in  posting,  items  entered  on  the 
debit  side  of  the  Cash  Book  are  entered  on  tlie  credit  side  of  the 
Ledger.  The  page  of  the  Cash  Book  from  which  the  entry  is  post- 
ed, is  put  in  the  fourth  column  of  the  Ledger.  Refer  to  item  db 
which  is  posted  to  Plate  65,  items  dc  and  dd  are  posted  to  Plate 
69.  Follow  these  entries  from  the  time  the  transaction  occurs 
until  they  are  completed,  ie;  posted  to  their  proper  accounts  in 
the  Ledger. 

The  entries  on  the  credit  side  of  the  Cash  Book  are  all  posted 
to  the  debit  side  of  the  Ledger.  Fox  has  opened  accounts  with 
Clovennead  Farm.  Production,  Implements,  Feed,  Bills  Receivable 
and  Lah(ir.  Refer  to  each  item  and  compare  the  entry  on  Cash 
Book  with  Ledger  entry.  You  will  note  the  entries  are  complete 
in  the  Cash  Book.  They  need  not  be  so  full  in  the  Ledger.  The 
examples  given  show  all  that  is  necessary. 

54.  The  Cash  Book  must  be  posted  at  the  end  of  the  month, 
if  it  has  not  been  before,  and  a  trial  balance  taken.  This  must  be 
done  at  the  end  of  every  mouth.  We  take  it  to  see  that  the  books 
are  in  balance — that  the  entries  in  the  Cash  Book  have  been  posted 
correctly. 

55.  NOTE: — In  posting  observe  the  following  order:  (1) 
the  amount,  (2)  the  date,  (3)  the  page  of  the  Cash  Book  from  which 
the  item  is  transferred. 

Before  you  begin  to  post  your  Cash  Book  write  in  the  second 
column,  the  pages  of  the  Ledger  to  which  the  entries  are  to  be 
posted.  Then  check  each  item  as  soon  as  you  have  posted  it.  It's 
a  good  plan  to  finish  posting  the  debit  side  before  you  begin  on 
the  credit  side — you're  not  so  liable  to  post  the  entries  to  the  wrong 
side  of  the  account. 

56.  TRIAL  BALANCE.— Xow  comes  the  trial  balance.  Fox 
has  gone  through  the  month  and  still  he  doesn't  know  whether  his 
books  "balance"  or  not.  A  trial  balance  is  taken  once  a  month 
to  see  if  all  entries  were  made  correctly,  that  is,  if  the  debit  side 
of  the  Ledger  equals  the  credit.     No  set  of  books  or  system  of  ac- 

55 


HOW  TO  KEEP  FARM  ACCOUNTS. 


counts  is  worth  anythinfi  to  anj-  business  unless  there  is  some 
cheek  on  them  that  will  prove  their  correctness.     That  is  why  a 
trial  balance  is  necessary,  and  as  accuracy  is  the  first  essential 
in  accounts.  Fox  takes  a  trial  balance,  and  this  is  what  he  finds. 
Dr.  TRIAL  BALANCE,  APRIL,  1901.  Cr. 


CB 

Cash 

$     425 

00 

Plate 

61 

J.    Fox 

$10246 

31 

Plate 

62 
66 
68 
72 
74 
80 

Clovermead 

Bills    Rcc'vable 

Production 

Feed 

Implements 

Labor 

9600 
70 

1371 

25 

739 

15 

00 
00 

45 
86 
00 
00 

65 

Bills   Payable 

2000 

00 

1 

$12246 

31 

$12246 

31 

His  Ledfi;er  is  in  balance.  That  is  the  footings  of  the  debit 
and  credit  sides  equal  cacli  other.  You  will  note  he  first  enters 
on  the  debit  side  of  the  trial  balance  the  anioniit  of  Casli  on  hand 
at  the  close  of  the  last  day  of  the  month.  Then  taking  the  Ledger 
he  goes  through  it,  entering  on  the  debit  side  of  the  trial  balance 
all  amounts  found  on  the  debit  side  of  the  Ledger,  and  on  the 
credit  side  of  the  trial  balance  all  amounts  found  on  the  credit 
side  of  the  Ledger.  This  is  always  the  case  unless  an  account  has 
entries  on  both  the  debit  and  credit  side,  and  then,  you  find  the 
difference  between  the  two  sides.  For  instance,  this  month  the 
debit  side  of  the  Production  account  (Plate  68)  is  fl,398.45  and  the 
total  of  the  credit  side  at  this  time  is  *27.00  (Plate  i>9).  The  dif- 
ference the  two  sides  is  .$1,371.45  which  he  sets  down  in  the  ex- 
])lanation  colunni  on  the  debit  side  of  tlie  Ledger  in  pencil.  This, 
I  lien,  is  the  amount  taken  in  the  trial  iialance.  Remember,  when 
an  account  has  entries  on  both  the  debit  and  credit  sides,  to  take 
the  difference  between  the  sums  total,  and  the  amount  the  greater 
exceeds  the  smaller  is  the  amount  carried  to  the  trial  balance. 

57.  TO  LOCATE  EKUOKS  IN  A  TRIAL  BALANCE.— If 
the  debit  and  cretlit  sides  of  a  trial  balance  do  not  exactly  agree 
the  books  are  not  in  balance  and  the  difference,  no  matter  how 

56 


HOIV  TO  KEEP  FARM  ACCOUNTS. 


small,  must  be  found.         If  they  don't  agree  proceed  as  follows: 

First. — The  footing  of  the  balance  should  be  verified. 

Second. — From  the  first  account  in  the  Ledger  until  the  last, 
the  addition  and  subtraction  of  each  account  should  be  carefully 
gone  over. 

Third. — Examine  each  entry  and  see  whether  or  not  a  debit 
has  been  made  for  every  credit,  and  for  every  credit  a  debit  for  a 
like  amount. 

Fourth. — If  any  accounts  have  been  balanced  and  carried  for- 
ward to  a  new  page,  see  if  the  amounts  carrier  are  correct. 

Finally,  if  the  difference  still  remains,  nothing  can  be  done 
except  to  go  over  the  entire  work  for  the  month  and  continue  to 
do  so  until  the  error  is  found,  for  be  it  known,  the  trial  balance 
is  simply  a  copy  of  the  accounts  in  the  Ledger,  and  if  the  entries 
have  been  made  properly  the  footing  of  the  debit  and  credit  sides 
will  be  exactly  alike. 


57 


HOir  TO  KEEP  FARM  ACCOUNTS. 


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TRANSACmONS  FOR  MAY,  1901. 

MAY    I. 
Cash  on  hand  $425.00. 

58.  The  amount  of  cash  on  hand  at  the  beginning  of  the 
month  is  entered  in  black  ink  as  shown  in  Plate  12,  item  da. 

MAY   2. 
He   sends  J.   M.  Whiton,  Wakeman,   O.,  New    York    draft    for   $i6.oo   for   8   bu. 
White  Mammoth  potatoes  for  seed.     The  bank  charges  him  lO  cents  for  draft. 

59.  Refer  to  Plate  13,  item  ca  for  the  proper  entrj  to  make 
for  this  transaction.  As  to  the  reason  for  charging  tliig  to  Ex- 
pense, refer  to  the  matter  relating  to  Expense  which  follows  plate 
70.     Note  that  he  includes  the  cost  of  the  draft  in  the  entry. 

MAY  3. 

He  buys  2  ton  Middlings  at  $22.00  and  a  barrel  of  salt  $1.50. 

60.  See  Plate  13.  item  cb.  Fox  wants  to  know  how  much 
Feed  ho  buys  during  the  year  so  he  opens  an  account  with  it. 
That  is  also  the  reason  he  inventoried  the  Feed  on  hand  which 
he  had  bought  previous  to  April  1st.  Read  explanatory  matter 
after  Plate  72.  regarding  this  account. 

MAY  s. 
He  has  one  thousand  each  of  Envelopes  ($2.50)  and  Letter  Heads  ($3.75)  printed. 

61.  On  every  farm  there  are  certain  articles  which  have  to 

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be  bought  to  be  used  in  the  maintainanoe  and  general  business  of 
the  farmstead.  All  these  incidental  outlajs  should  be  charged  to 
Expense.  It  is  neither  desirable  or  necessai-y  to  open  more  ac- 
counts in  the  Ledger  than  will  show  the  results  of  the  management. 
Too  m^ny  accounts  require  needless  writing  and  detail.  This 
item  of  stationary  is  Expense.  Refer  to  Plate  13,  item  cc.  Refer 
to  162. 

MAY  -. 
He  has  had  so  much  trouble  to  get  competent  help  on  the  farm,  that  he  makes 
contract  with  Ed.  Wise,  who  has  been  working  for  hirn  off  and  on  for  some  time, 
to  work  by  the  year  at  $300.00.  Wise  to  board  all  the  extra  halp  employed  on  the 
farm,  and  in  addition  to  the  wages  agreed  on,  to  have  truck  patch,  pasture  for  cow, 
and  house  rent  free  of  charge.     Contract  dated  May  ist. 

63.  No  entry  for  above — simply  a  memoranda.  He  files  the 
contract — refer  to  (8).  All  money  paid  to  Wise  will  be  charged 
to  him  in  the  future  and  not  to  Labor.  Read  matter  following 
Plate  78. 

MAY   ID. 
He  buys  a  Chicago  Sheep  Shearing  Machine — $15.00. 

63     He  has  already  opened  an  account  with  Implements. 

69 


HOIV  TO  KEEP  FARM  ACCOUNTS. 


All  farm  machinery  bought  must,  of  course,  be  charged  to  that 
account.    (See  Plate  13.  item  cd.)    Refer  to  173. 

MAY  25. 
He  pays  Eli  Jones  $40.00  for  Stallion  Services. 

64.  This  is  charged  to  Expense  for  the  same  reason  that  item 
ca  was.     For  entry  see  item  ce.  I'late  13.     Refer  to  163. 

MAY  30. 

He   balances    his    cash    for    May — $300.15   on   hand. 

The  difference  between  the  sums  total  of  the  two  sides 
of  the  Cash  Book  is  $300.15.  That  is  what  he  has  on  hand  so  he 
enters  it  in  red  ink  (Plate  13,  item  cf)  rules  the  closing  lines  and 
enters  the  footings  of  the  two  sides  in  black  iuk  between  them, 
just  as  he  did  when  closing  the  April  cash. 

The  posting  done  he  must  again  take  a  Trial  balance  to  see 
whether  or  not  his  books  are  in  balance.  Thi.s  he  does  and  it  fol- 
lows: 

Dr.  TRIAL  BALANCE,  MAY,  1901.  Cr. 


CB 

Cash 

$     300 

15 

Plate 

61 

J.  Fox 

$1024^ 

31 

Plate 

62 
66 
68 
70 
72 
74 
80 

Clovermead 

Bills    Rec'vable 

Production 

Expense 

Feed 

Implements 

Labor 

9600 
70 

1371 

62 

73 

754 

15 

00 
00 
45 
35 
36 
00 
00 

65 

Bills    Payable 

2000 

00 

$12246 

31 

$12246 

31 

65.  Observe  that  the  Trial  Balance  is  simply  the  footings  of 
the  various  accounts  in  the  Ledger  except  where  there  have  been 
entries  on  both  the  debit  and  credit  sides  on  an  account,  and  then, 
the  difference  between  the  two  sides  only  is  entered  in  the  Trial 
IJalance.  Refer  to  the  Production  account,  Plate  (58,  Entries 
have  been  made  on  both  sides  of  this  account  and  as  the  debit  side 
is  the  greater  the  difference  $1,371.45  is  what  is  entered  on  the 

debit  side  of  the  Trial  Balance. 

60 


Transactions  for  June,  1  90 1 


HOIV  TO  KEEP  FARM  ACCOUNTS. 


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TRANSACTIONS  FOR  JUNE.  1901. 

JUNE  I. 
Cash  on  hand  $300.lS- 

66.  Immediately  after  the  cash  is  balanced  for  the  month 
you  must  enter  amount  on  hand  as  shown  by  item  da,  Plate  16. 
This  is  done  every  time  the  cash  is  balanced — daily,  weekly  or 
monthly.  If  many  transactions  occur  it  is  best  to  balance  daily, 
or  weekly  at  the  latest,  where  but  few  take  place,  once  a  month 
will  answer  as  shown  in  this  illustration. 

JUNE  2. 
Wm.  George,  of  Troy,  Ohio,  to  whom  Fo.x  shipped  Seed  Corn  on  .\pril  loth, 
writes  that  it  hasn't  arrived — that  it's  now  too  late — he  can't  accept,  and  wants 
his  money  refunded.  Although  a  shipper's  responsibility  ceases  when  goods  are 
delivered  to  R.  R.  Co.,  he  refunds  the  money  ($15.00)  and  makes  clcaim  to  the 
C,  H.  &  D.  R.  R.  for  the  amount  lost  plus  the  expense  of  draft. 

67.  Rather  than  antagonize  a  customer  Fox  decides  to  col- 

62 


HOIV  TO  KEEP  FARM  ACCOUNTS. 


or  THE     ■^ 

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lect  the  amount  of  this  shipment  fronu  the  E.  R.  Co.,  himself. 
First.^ — He  has  no  account  with  Georj^je,  so  when  he  sends  draft  to 
George  for  the  amount  of  loss,  he  must  debit  the  account  to  which 
the  sale  was  credited,  to  Production.  (See  Plate  17,  itemca.) 
Second. — The  draft  costs  10  cents  which  he  charges  to  Expense. 
(Plate  17,  item  cb.)  Third.— Fox  is  now  out  the  Seed  Corn  and  the 
expense  of  draft;  so  he  charges  the  C.  H.  &  D.  E.  E.  with  flS.lO, 
the  amount  he  is  short  by  the  transaction.  Plate  17,  item  cc.) 
Fourth.— In  double  entry  there  must  be  a  debit  for  every  credit, 
and  having  debited  the  C,  H.  &  D.  E.  E.  with  $15.10,  he  must  also 
credit  Production  for  the  same  amount.  (Plate  16,  item  db.)  In 
making  claims  to  Railroads  they  insist  on  the  original  Bill  of 
Lading  in  total  losses  and  both  the  Bill  of  Lading  and  Expense 
Bill  (Freight  receipt)  where  partial  loss  is  sustained.  To  make 
claim  for  loss,  such  as  described  iu  transaction  above,  the  follow- 

63 


HOW  TO  KEEP  FARM  ACCOUNTS. 


ing  is  necessary:     (1)  Copy  of  Invoice  to  George.     (2)  Original  Bill 

of  Lading.     (3)  attach  (1)  and  (2)  to  an  invoice  made  out  in  name 

of  R.  R.     These  should  be  given  to  the  local  agent.     But  R.  R's. 

move  slowly  in  paying  claims.     After  a  reasonable  lensrth  of  time 

it  is  well  to  stir  them  up  at  intervals,  and  let  them  know  you  are 

looking  after  your  end — are  a  business  farmer  and  know  what 

you're  about.     Refer  to  197  and   199. 

JUNE  8 

He   sells   his   wool — 726  lbs.,  at   i6c.     Pays  60c  for  „re-setting"  two   shoes  on 
Queen,  and  $3.00   for   repairs   on    Mower. 

68.  First. — Fox  doesn't  want  accounts  opened  with  every 
thing  he  grows — too  much  detail.  His  sales  are  all  entered  to  the 
credit  of  his  Production  account,  hence,  the  Wool  sold  above  is  en- 
tered as  shown  on  Plate  1(5,  item  dc.     See  158. 

Second. — The  inevitable  E^xpense  again.  But  his  horses  must 
be  shod,  and  the  Clover  is  coming  on  fast.  Tlie  Mower  is  now 
ready.  Both  charged  to  Expense.  (Plate  17,  item  cd.)  See  lUl 
and  163.  JUNE  22. 

He  pays  John  Dye  and  Sam  Petit  each  $6.00  for  four  days'  labor. 

69.  Labor,  too,  is  quite  an  item  and  lie  wants  to  know  how 
much  it  costs  him  for  the  year.  All  extra  help  he  employs  he 
charges  to  Labor  account.  For  entry  see  Plate  17,  item  ce.  Refer 
to  183.  JUNE  24. 

He  sells  20  Hogs,  averaging  230  lbs.  each,  at  $S.40  and  pays  his  June  taxes — $32.64. 

70.  First. — As  everything  Fox  sells  off  the  farm  is  credited 
to  Production,  the  proceeds  for  the  Hogs  is  credited  to  that  ac- 
count. (Plate  1(>,  item  dd.)  Second. — He  opens  an  acount  for 
Taxes  and  Insurance.     (Plate  17.  item  of.     Refer  to  193. 

JUNE  28. 
Ed.  Wise  draws  $20.00  on  account. 

71.  Although  this  item  is  for  Labor,  yet.  Wise  is  hired  by 
the  year  and  wants  to  draw  his  money  as  he  needs  it.  This  neces- 
sitates opening  an  account  with  Wise,  and  all  money  drawn  by 
him  must  be  chai'ged  to  him.     (Plate  17,  item  eg.)     Refer  to  177 

and  178.  JUNE  30. 

He   balances   his  cash — $581.37.   on   hand. 

The  cash  on  hand  in  $581.37  and  as  that  agrees  with  the  bal- 
ance shown  by  the  Cash  Book  he  rules  the  closing  lines  as  he  did  in 
April.     (See  Plates  16  and  17.  items  de,  ch  and  ci.) 

64 


HO IV  TO  KEEP  FARM  ACCOUNTS. 


Dr. 

TRIAL  BALANCE,  JUNE,  1901. 

Cr. 

CB 

Cash 

$     S8i 

37 

Plate 

61 

J.     Fox 

1 
$10246(31 

Plate 

62 

66 

Clovermead 
Bills    Rec'vable 

9600 
70 

GO 
00 

6S 

Bills    Payable 

2000 

00 

^ 

68 
70 

Production 
Expense 

1006 
66 

79 
05 

" 

72 

74 
78 
80 

Feed 

Implements 

Wise 

Labor 

73 

754 
20 

27 

36 
00 
00 
00 

'■ 

84 

Taxes 

2,2 

64 

li 

86 

iC.  H.  &  D.  Ry. 

15 

10 

\ 

I$i2246|3i 

1$  1 2246 

31 

Trial  balance  for  June  is  shown  above. 


65 


nOir  TO  KEEP  FARM  ACCUU.XTS. 


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;  TRANSACTIONS   FOR  JULY.  1901. 

JULY    I. 
Cash  on  hand  $s8i-37- 

Whenever  tho  cash   account   is  balanced — whether  daily, 

weekly  or  monthly  the  first  entry  after  balancing  is  to  debit  cash 

for  the  amount  on  hand.     (Plate  20.  item  da.) 

JUIY   15. 
V\'m.  Wood  pay?  his  note  of  $70.00  due  today  with  interest  at  6%. 

72.  All  notes  we  hold  given  to  us  in  settlement  for  money 
"loaned  or  in  payment  of  products  sold  are  debited  to  Bills  Receiv- 
.able.  Wood  pays  his  note  today  with  interest.  We  now  credit 
Hills  Receivable  for  the  face  of  the  note  as  shown  on  Plate  20, 
item  dl>.     (See  143  and  147.) 

We  must  also  credit  the  interest,  therefore,  open  an  account 
with  IntercHt  and  credit  it  as  shown  on  Plate  20.  item  dc.     (Ivook 

up  18G  and  189.)  JULY  20. 

He  sends   the   Breeder's  Gazette  $6.00  and  the   National   Stockman  $5.20  to   pay 

for  his  advertisement  of  Seed  Corn.     The  money-order  cost  him  16  cents. 

73.  As   the  amount   Fox  pays  for  advertising  is  small  he 

doesn't  open  an  account  with  it  bul  charges  it  to  ICxpense.     See 

Plate  21,  item  ca.     Refer  to  161. 

JULY  21. 
lie  accepts  the  Stock   Scale  pvit  in  for  him  by  E.  Thomas  and  pays  $6500. 

74.  Although  scales  might  be  considered  under  the  head  of 
Building  and  Improvements,  yet.  after  putting  them  in  they  are 

66 


HOW  TO  KEEP  FARM  ACCOUNTS. 


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a  part  of  the  farmstead's  equipment  as  much  as  are  fences  or  sheds. 
Rather  than  charge  to  Improvements  and  inventory  them  from 
year  to  year.  Fox  prefers,  as  they  are  a  fixture,  to  charge  them  at 
once  to  Expense.     (Plate  21,  item  cb.)     Read  129. 

JULY  28. 
He  buys  loo  bushels  of  Oats  at  32c. 

75.  Fox  doesn't  grow  any  Oats.  He  buys  them  to  feed  and 
so  charges  to  Feed  as  he  wants  to  know  how  much  he  pays  for  it 
during  the  year.     (Plate  21,  item  cc.)     Refer  to  168. 

JULY  31. 
Cash  balance  today  shows  $547.21   on  hand. 

Refer  to  April,  May  and  June  closing  of  cash  accounts.  (Plate 
21.  item  cd.) 

Dr.  TRIAL  BALANCE,  JULY,  1901.  Cr. 


CB 

Cash 

$     547 

21 

Plate 

1 
61 

J.    Fox 

$10246 

31 

Plate 

62 

Clovermead 

9600 

00 

ti 

65 

Bills   Payable 

2000 

00 

'• 

68 

Production 

1006 

79 

" 

83 

Interest 

4 

20 

" 

70 

Expense 

142 

41 

1 

tt 

73 

Feed 

105 

36 

1 

" 

74 

Implements 

754 

00 

" 

78 

Wise 

20 

00 

tt 

80 

Labor 

27 

00 

(t 

84 

Taxes 

32 

64 

" 

86 

C.  H.  &  D.  Ry. 

15 

10 

|$I2250|SI     1 

$12250 

11 

67 


HOW  TO  KEEP  FARM  ACCOUNTS. 


If  care  is  used  when  posting  the  Cash  Book  and  footing  the 
different  accounts  in  tlie  Ledjjer  no  jireat  trouble  need  be  found  in 
takinj;  the  Trial  lialance.  Note  the  Bills  Keceivable  account 
doesn't  appear  in  tliis  month's  balance.  That  was  paid  and  as 
the  account  balanced,  is  now  closed. 


68 


Transactions  for  August,    1901 


HO^F  ro  KEEP  FARM  ACCOUNTS. 

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TRANSACTION  FOR  AUGUST,  1901. 

AUGUST   I. 
Cash  on  hand  $547.21. 

Refer  to  previons  months.     (Plate  24,  item  da.) 

AUGUST  3. 
He  gives  Ed.  Wise  $10.00  on  account. 

See  Plate  25,  item  ca.     Refer  to  177  and  178. 

AUGUST   IS 
The  roads  are  good  and  he  has  time,  so  he  puts  in  the  coal  needed  for  winter — 
10  tons,  at  $575- 

76.  All  money  drawn  for  personal  use  should  be  charpe<l  to 
Fox.  He  buys  the  coal,  now  that  he  can  put  it  in  for  winter,  and 
charges  the  amount  it  cost  to  his  (Fox)  personal  acount.  (Plate 
25,  item  cb.)     See  110. 

AUGUST  23. 
He  pays  Joe  Morgan  $24.00  for  threshing  800  bu.shels  Wheat,  at  ^c. 

77.  Fox  charges  his  threshing  bill  to  Expense  because  at 

the  end  of  the  j'ear  by  keeping  his  Production  account  distinct  it 

shows  at  the  close  just  what  he  annual  sales  from  the  farmstead 

amounts  to.     (Plate  25,  item  cc.)     Refer  to  1(J1  and  163. 

AUGUST  28. 
He  buys  too  lbs.  Linseed  Meal  at  $27.00  a  ton,  and  a   Keg  of  Nails,  at  $2.70. 

78.  First. — He  charges  Linseed  Meal  to  Feed.  (Plate  25, 
item  cd.)     See  168.  70 


HOW  TO  KEEP  FARM  ACCOUNTS. 

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Second.— The  nails  to  Expense..     (Plate  25,  item  ce.)     R«fer 

to  162, 

AUGUST  30. 

He  sells  8oo  bushels  of  Wheat  at  8oc. 

79.     All  products  sold — no  matter  wnat,  he  credits  to  Produc- 
tion.    (Plate  24,  item  db.)     Refer  to  158. 

AUGUST  31. 
He  balances  his  cash — $1,091.66  on  hand. 

Refer  to  April  and  May  closing.     The  entry,  (Plate  25,  item 
cf.) 

Dr.  TRIAL  BALANCE,  AUGUST,  1901.  Cr. 


CB 

Cash 

$  1091 

66 

Plate 

61 

J.     Fox 

$10188 

81 

Plate 

62 

■Clovermead 

9600 

00 

65 

Bills    Payable 

2000 

00 

68 

Production 

366 

79 

" 

83 

Interest 

4 

20 

70 

Expense 

169 

II 

72 

Feed 
Implemeats 

106 

71 

74 

754 

00 

78 

Wise 

30 

00 

80 

Labor 

27 

00 

84 

Taxes 

32 

64 

86 

C.  H.  &  D.  Ry. 

IS 

10 

$12193 

01 

$12193 

01 

71 


HOW  TO  KEEP  FARM  ACCOUNTS. 


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TRANSACTIONS  FOK  SEPTEMBEK.  1901. 

SEPTEMBER   i. 
Cash  on   hand  $1,091.66. 

For  entry  see  Plate  28,  item  da. 

SEPTEMBER  5. 
He  buys  ■zVi  tons  Fertilizer  at  $18.00. 

80.  Expens(\     (Plato   29,   item    ca.)     See   162. 

SEPTEMBER   7. 

He   sends   draft   to   Geo.    E.   Scott,   Mt.   Pleasant.   Ohio,    for   yjYi   bushels    Fultz 
wheat  for  seed  at  $i.oo,  F.  O.  B.     Bank  charges  loc  for  draft. 

81.  Tln,s  transaction  charged  to  Expense.     (Plate  29.  item 
ca  )     Refer  to  155  and  162. 

SEPTEMBER  8. 
Two  tons  of  Middlings  cost  $24.00  a  ton. 

83.     Feed.     (Plate  29,  item   ce.)     Refer  to  168. 

72 


HOIV  TO  KEEP  FARM  ACCOUNTS. 


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SEPTEiMBER  lo. 
He  gave  his  wife  $20.00. 

83.  A  personal  matter  with  Fox.  and  charged  to  his  person- 
al (J.  Fox)  account.     (Plate  29,  item  cd.)     Refer  to  110. 

SEPTEMBER   18. 
Freight  on  Seed  Wheat  costs  $2.56. 

84.  Expense.     (Plate  29.  item  ce.)     Pvefer  to  155  and  162. 

SEPTEMBER   20. 

He  buys  4  bushels  of  Timothy  Seed  of  the  Phillips  Seed  Co.,  Toledo,  Ohio,  for 
which  he  pays  $8.00. 

85.  Expense.     (Plate  29.  item  of.)     Refer  to  155  and  162. 

SEPTEMBER  28. 
He  pays  John  Belts  $12.50  for  ten  days'  labor. 

Labor.     (Plate  29.   item   eg.)     See  183. 

SEPTEMBER  30. 

His  cash  on  hand  amounts  to  $918.00. 

He  balances  his  cash  for  the  month.     (Plate  29,  item  eh.) 

73 


HOW  TO  KEEP  FARM  ACCOUNTS. 


D 

r. 

TRIAL  BALANCE 

SEPTEMBER,  1901. 

Cr. 

CB 

Cash 

$    918I00 
960000 

Plate 

61 

John    Fox 

$10168 

81 

Hate 

62 

Clovermcad 

" 

6S 

Bills    Payable 

2000 

00 

•• 

68 

Production 

36679 

t* 

83 

Interest 

4 

20 

" 

70 

Expense 

26227 

1 

" 

72 

Feed 

1S4I71 
754(00 

•■ 

74 

Implements 

•• 

78 

Wise 

3000 

39l5« 

32I64 

1 

" 

80 

Labor 

" 

84 

Taxes 

■ 

86 

C.  H.  &  D.  Ry. 

15I10 

1 

|$i2i73|oi    1 

$12173 

01 

The  Trial   Balance  is  again  taken  and   is  pimply  the  face 
of  the  Ledger.     It  should  be  taken  every  month. 


74 


Transactions  for  October,  1 90 1 


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TRANSACTIONS  FOK  OCTOBER,  1901. 

OCTOBER  I. 

Cash  on  hand  $918.00. 

Plate  32,  item  da. 

OCTOBER  3 
He  gives  Ed.  Wise  $10.00  on  account. 

Plate  33,  item  ca.     Refer  178. 

OCTOBER  15. 
He  sells  25  head  of  Hogs,  which  average  195  lbs,  for  $5.25. 

86.  Production.     (Plate  32.  item  db.)     See  158. 

OCTOBER  20. 

He   sells    150   bushels    of   rotatocs   at   45c. 

87.  See  Plate  32,  item  dr.     See  158. 

OCTOBER  25. 
He   takes  20  bushels  of  Potatoes   for  personal  use,  and  also  gives   Ed.   Wise  20 
bushels,  market   price  45c. 

88.  Production  should  be  credited  for  anythini;  taken  for 
personal  use  from  what  is  raised  on  the  farm.  We  credit  Produc- 
tion, (Plate  32,  item  dd,)  and  debit  both  Fox  and  Wise  for  the 
number  of  bushels  they  take.  (See  Plate  33.  item  rb  and  cc.) 
Refer  to  110  and  179. 

OCTOBER  30. 
He  pays  John  Belts  $1.25  a  day  for  15  days'  labor. 

Labor.     (Plate  33.  item  cd.)     See  183. 

76 


HOW  TO  KEEP  FARM  ACCOUNTS. 


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OCTOBER   31. 
He  balances  his  cash — $1206.13. 

Plate  33,  item'  ce. 

Dr.  TRIAL  BALANCE,   OCTOBER,  igoi. 


Cr. 


CB 

Cash 

$  1206 

13 

Plate 

61 

John    Fox 

$10159 

81 

Plate 

62 

Clovermead 

9600 

00 

" 

6S 

Bills    Payable 

2000 

00 

68 

Production 

31 

91 

(( 

83 

Interest 

4 

20 

70 

Expense 

262 

27 

72 

Feed 

154 

71 

• 

74 
78 

Implements 
Ed.    Wise 

754 
49 

00 
00 

» 

80 

Labor 

58 

25 

84 

Taxes 

32 

64 

86 

C.  H.  &  D.  Ry. 

15 

10 

$12164 
1 

01 

$12164 

or 

77 


HOff  '/"O  A'££F  £^i?M  ACCOUNTS. 

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TEANSACTION  FOR   NOVEMBEK.   1901. 

NOVEMBER    i. 
Cash  on  liand  $1,206.13. 

Plate  36,  item  da. 

NOVEMBER  15. 
He   sells    117   lambs,  averaging  98  lbs.   each,   at  $5.50,   and   buys    500  bushels   of 
corn  at  30c. 

89.  The  Lambs  credited  to  Production,  (Plate  36,  item  db,) 

and  the  Corn  charged  to  Feed.     (Plate  37.  item  ca.)     See  159  and 

168. 

NOVEMBER  20. 

He  sells  34  head  of  Hogs  at  $5.25.     Average  weight  220  lbs. 

Production.     (See  Plate  36,  item  dc.)     See  159. 

NOVEMBER  23. 
He  pays  for  Husking  and  Shredding  his   Corn  crop,  2,000  bushels,  at  zf/j   cents 
a   bushel. 

90.  Expense.     (Plate  37.  item  cb.)     Kefer  to  163. 

NOVEMBER  29. 
According  to  contract   made   in   March   he   sells   the  Williams   Seed   Co.,  of  To- 
ledo, his  crop  of  corn  for  .seed  at  25  cents  a  bushel  above  market  price.     1.600 
bushcl.s   at  60  cents. 

From  the  above  we  note  that  Fox  has  contracted  his  corn  crop 
at  25  cents  a  bushel  above  market  price.  His  croj)  of  2,000  bushels 
after  sorting;  left  l.tiOO  busliels  of  prime  seed,  which  he  now  de- 
livers. The  price,  tiO  cents,  is  2r)  cents  above  the  market  price. 
Fox  feels  he  can  well  afford  to  raise  corn  by  cou(»-act  and  buy  all 

78 


HOr^  TO  /C££F  FARM  ACCOUNTS. 

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he  ueeds  to  feed  at  these  li<>ures.     He  credits  Production.     (See 
Plate  36,  item  dd.)     Kefer  to  158. 

NOVEMBER  30 
He    pays    John    Belts    and    Sam    Pettit    each    $12.50    for    ten    days'    labor,    and 
balances  his  cash — $2964.46  on  hand. 

Refer  to  Plate  37,  item  cc  and  cd  for  above,  and  look  up  183. 


Dr. 

TRIAL  BALANCE, 

NOVEMBER,  1901. 

Cr. 

CB 

Cash 

$  2964 

46 

Plate 

61 

J.    Fox 

$10159 

81 

Plate 

62 

Clovermead 

9600 

00 

•' 

6S 

Bills   Payable 

2000 

00 

" 

70 

Expense 

312 

27 

" 

69 

Production 

1951 

42 

»* 

72 

Feed 

304 

71 

*' 

83 

Interest 

1           4  20 

" 

74 

Implements 

754 

00 

.. 

78 
80 

Ed.    Wise 
Labor 

49 
83 

00 

25 

. 

_, 

84 
86 

Taxes 

C.  H.  &  D.  Ry. 

32 
15 

64 
10 

?I4II5  43 

$1411543 

1             1 

The  Trial  Balance  is  <;iven  to  show  how  it  varies  from  month 
to  month.     Compare  it  with  those  that  preceed  and  follow  it. 

79 


HOW  TO  KEEP  FARM  ACCOUNTS. 


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TRANSACTIONS  FOR  DECEMBEli,  1901. 

DECEMBER    i. 
Cash   on  hand   $2,964.46. 

DECEMBER    5. 
Ed.  Wise  wants  3  Hogs  to  butcher,  same  to  be  charged  to  his  account.     Weight 
averages  240  lbs.,  at  $5.50. 

91.  This  entry  is  similar  to  that  of  October  25th.  Wise  is 
charged  with  the  amount  (Plate  41,  item  ca)  and  Production 
credited.  (Plate  40,  item  db.)     Refer  to  E.vamples  88  and  179. 

DECEMBER  8. 
He  butchers  3  Hogs  himself.     Average  weight  232  lbs.,  at  $5.50. 

92.  Credited  to  Production  (Plate  40,  item  dc)  and  debited 
to  J.  Fox  (Plate  41,  item  cb)  for  the  same  reason  as  fjiveu  under 

Transaction  of  October  25111.     Refer  I0  110. 

80 


HOW  TO  KEEP  FARM  ACCOUNTS. 


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DECEMBER    10. 
He  has  some  shoeing  done,  $4.75. 

Expense.     (Plate  41,  item  ce.)     Refer  to  163. 

DECEMBER    15. 
He   gives   his   wife  $30.00  and  takes  $47.00  himself  for  personal   use. 

93.  ChaFged  to  his  personal  account  (Plate  41,  item  cd.)  Re- 
fer to  110. 

DECEMBER  18. 
H«  buys  200  bushels  of  Oats,  paying  30  cents.  Renews  his  subscription  to  the 
Breeders  Gazette,  ($2.00)  National  Stockman,  ($1.00)  Ohio  Farmer,  (6oc)  Farm 
Journal  (40c),  Rural  New  Yorker  ($1.00)  Practical  Farmer,  (60c)  and  the 
American  Sheep  Breeder  ($1.00)  making  a  total  of  $6.60.  He  pays  12  cents  for 
money-orders,  and  for  postage  stamps  $2.00. 

94.  Oats  charged  to  the  Feed  account  (Plate  41,  item  ce). 
Subscriptions  to  farm  papers  he  charges  to  Expense  (Plate  41, 
item  cf).  The  money-orders  and  stamps  are  also  Expense,  there- 
fore, he  includes  it  in  the  same  entry.     Refer  to  161  and  168. 

81 


HOIV  TO  KEEP  FARM  ACCOUNTS. 


DECEMBER  20. 
He   begins   to   think   he   ought   to   have   a  bank   account.     Doesn't   like   the   idea 
of  having   so   much   money  in   the   house,   therefore,   he   opens   an   account    with 
the  First  National  of  his  County  Seat  by  depositing  $2750.00. 

95.  Fox  cliarges  or  debits  the  bank  for  the  money  he  deposits 
today  (Plate  41,  item  eg)  and  will  open  an  account  with  (he  Bank 
in  the  Ledger.  It  is  true  that  many  take  exception  to  keeping  the 
bank  account  in  the  Ledger,  and  some  accountants  characterize 
it  as  "old  fogyism"  but  the  conditions  which  govern  farm  account- 
ing are  different  than  those  of  commerce.  The  farmer  will  find 
it  a  great  source  of  satisfaction  to  have  it  there — ready  to  refer 
to  at  any  time.  Further,  when  the  bank  returns  him  his  cancelled 
checks,  he  can  compare  those  cancelled  with  those  given  out  and 
tell  at  a  glance  if  any  have  not  been  presented  for  payment.  But 
more  than  all,  a  farm  IxMlger  should  show  for  various  reasons, 
every  business  transaction  of  the  farmstead  for  the  year.  Ifs 
more  than  likely  tlie  owner  himself  will  keep  the  books — or  rather 
book,  and  if  death  should  suddenly  ensue,  the  Ledger  ought  to  be 
kei)t  so  as  to  furnish  a  guide  to  those  of  his  family  who  take-up 
the  management  of  the  farmstead  and  continue  it  along  prosperous 
lines.     Refer  to  212. 

DECEMBER   23. 
He   gives   Ed.   Wise    check    for    $50.00.   and   also    writes    another    for   $10.00   for 
personal    use. 

96.  He  debits  ^^■is(■  for  check  (Plate  41,  item  ch)  and  as  this 
is  llie  first  chet'k  he  has  given  out.  he  numbers  it  No.  1.  He  has 
now  debited  Wise,  but  as  he  is  going  to  open  an  account  with  the 
Bank  in  his  Ledger  he  must  also  credit  the  Bank  for  this  check 
No.  1  whi(di  he  does  in  Knlry  (hi.  Plate  40.  In  posting  this  entry 
(Id  t(i  the  Bank  account  (Kefer  to  Plate  89,  item  dd)  he  writes 
in  the  explanation  column  Ck.  No.  1.  so  that  when  comparing  tht 
cancelled  checks  returned  by  the  Bank  about  the  tirst  of  the  month 
he  can  check  over  the  account  and  see  just  what  checks  iuive 
been  presented  for  payment.  On  the  stub  of  his  check  book  he 
also  writes  the  number  so  that  he  can  number  each  clieck  as  he 
makes  it  without  having  to  refer  to  the  Ledger  account  to  tind 
the  number  of  the  last  check. 

He  also  charges  himself  for  Check  No.  2  which  he  makes  for 

82 


HOIV  TO  KEEP  FARM  ACCOUNTS. 


personal  use  (Plate  41.  item  ci)  and  credits  the  Bank  (Plate  40, 
item  de  for  same.)    Refer  to  110  and  178. 

DECEMBER   31. 


Cash  balance  shows  $43.99. 

Dr.  TRIAL    BALANCE,    DECEMBER,    1901. 


Cr. 


CB 

Cash 

$      43 

99 

Plate 

61 

J.   Fox 

$10014 

53 

Plate 

62 

Clovermead 

9600 

00 

'• 

65 

Bills    Payable 

2000 

00 

70 

Expense 

325 

74 

" 

69 

Production 

2029 

30 

}72 

Feed 

364 

71 

" 

82 

Interest 

4 

20 

74 

Implements 

754 

00 

78 

Wise 

138 

60 

80 

Labor 

83 

25 

84 

Taxes 

32 

64 

86 

C.  H.  &  D.  Ry. 

15 

10 

'■ 

88 

First    Nat.    Bk. 

2690 

00 

1         1 

$14048 

03 

|$I4048 

^ 

HO IV  TO  KEEP  FARM  ACCOUNTS. 


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Cash   on   hand  $4399. 

Plate  44,  item  da. 


TKANkSACTION  FOK  JANUAKY.  1002. 
J.\NUARY    I. 


JANUARY  2. 


He    pays    his    note    of   $500.00    due    today,    and    interest    on    mortgage    held    by 
his   bank. 

97.  First.— Debit  Bills  Payable.  (Plate  45,  item  ca.)  Refer 
to  137. 

Second. — Debit  Interest  for  amount  paid  on  mortgage.  (Plate 
45,  item  cb.)     Refer  to  187. 

Third. — Credit  the  Bank  for  check  No.  3.  covering  the  note 
due  today  and  interest  on  mortgage.  (Plate  44,  item  db.)  Refer 
to  213. 

JANUARY   12. 
He   draws  $30.00  from   the   bank  for  expenses   and   attends    the   annual   meeting 
of  the  State   Board  of  .>\griculture. 

Two  Entries.  Plate  45,  item  cc,  and  Plate  44,  item  do.  Refer 
to  110  and  213. 

JANUARY   22. 

The   C,  H.   &  D.  sends  him  check  of  $15.10  for  his  claim   made   in  June,   1901, 
for  Seed  Corn  lost  in  transit. 

The  V.  n.  &  D.  finally  i)ay  him  for  shipment  lost  the  Ai)ril 
previous  and  as  he  had  opened  an  account  with  them,  he  now 
credits  them.  (Plate  44,  item  dd.)  This  is  equivalent  to  "Ac- 
counts with  persons  to  whom  we  sell  "Produce."    See  197. 

JANUARY  30. 

He  pays  his  December  1901  Taxes,  $32.64,  by  check,  and  deposits  the  check  for 
$15.10  received  from  the  C,  H.  &  D.  to  his  credit  in  the  Bank. 

98.  Taxes  debited  to  Taxes  and  Insurance  (Plate  45,  item 

84 


HOW  TO  KEEP  FARM  ACCOUNTS. 


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ed).  Refer  to  194.  The  C.  H  &  D.  check  he  deposits  in  the  Bank 
to  be  credited  to  his  account,  therefore,  he  debits  the  Bank  (Plate 
45,  item  ce)  for  the  amount  of  the  check,  flS.lO.     Refer  to  212. 

JANUARY  31. 
He  balances  his  cash — $43.99  on   hand. 


Dr. 

TRIAL 

BALANCE,    JANUARY 

,    1902. 

Cr. 

CB 

Cash 

$      43 

99 

Plate 

61 

J.   Fox 

$  9984 

53 

Plate 

62 

Clovermead 

q6oo 

00 

" 

65 

Bills    Payable 

ISOO 

00 

" 

70 

Expense 

'      325 

74 

tt 

69 

Production 

2029 

30 

" 

72 

Feed 

364 

71 

(i 

74 

Implements 

754 

00 

■• 

78 

Wise 

1 38 

60 

a 

80 

Labor 

83 

25 

" 

82 

Interest 

115 

80 

" 

84. 

Taxes 

65 

28 

it 

88 

First    Nat.    Bk. 

2022 

46 

I$i35i3 

83 

1                                 1$I35I3 

M 

85 


HOW  TO  KEEP  FARM  ACCOUNTS. 


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Cash  on  hand  $4399. 


TKANSACTIU>s'S  FOK  FEBKl  AHY,  1902. 
FEBRUARY  i. 


FEBRUARY  2. 


He   gives    Ed.    Wise   check   for   $10.00.     He   has   the   shoes   sharpened    and   reset 
on  Jack  and  Jim  for  which  he  pays  $1.40  in  cash. 

First. — Wise  pharjied  witli  check  (Plate  49.  item  ca).     See  178. 
Second. — Bank  credited   for  this  check   (Plate  48.  item   db). 
Kefer  to  213. 

Third. — Slioeing  is  Expense  and  paid  in  cash  (Plate  48.  item 
cb).     Kefer  to  163. 

FEBRUARY  7. 
He  buys  a  Bob  Sled,  $15.00,  also  buys  a  ton  each  of  Bran,  $21.00,  and  Middlings, 
$24.00,   giving   check   for  same.     The   Bank   gives   him   his   cancelled   checks   for 
January. 

99.  IMrst. — Bob  Sled  charged  to  Implements  (Plate  49,  item 
oc).     Refer  to  173. 

Second. — Bi;in  ami  iliddlings  charged  to  Feed  (Plate  49.  item 
cd).     See  168. 

Third.— Bank  is  credited  for  botli  checks  ^■o.  7  and  No.  8— 
given  in  payment  for  the  Bob  Sled  and  the  Feed  (Plate  48,  items 
dc  and  dd).     See  213. 

86 


HOIV  TO  KEEP  FARM  ACCOUNTS. 


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About  Cancelled  Cliecks.  see  remarks  after  Plates  88  and  89. 

FEBRUARY  lo. 
4;-'j  bushels  Clover  Seed  costs  56.50  a  bushel. 

100.  First— Expense  (plate  49,  item  ce).     Kefer  to  162. 
Second. — Credit  the  Bank  for  amount  of  check  (Plate  48,  item 

da).    See  213. 

FEBRUARY  15. 
He  has  long  wanted  the  40  acres  originally  a  part  of  Clovermead  Farm,  and 
buys  it  for  $82.50  an  acre.  The  First  National  Bank  loans  him  the  money  at 
5%  on  ten  years'  time,  agreeing  to  accept  payment  of  the  whole  or  any  part 
of  principal  on  any  interest  day  after  five  years.  He  secures  the  Bank  by 
mortgage. 

101.  Charge  Clovermead  Farm  with  the  amount  of  the  mort- 
gage given  to  the  Bank  (Plate  49,  item  cf).     Refer  to  117  and  119. 

Second. — Credit  Bills  Payable  for  the  mortgage  (Plate  48, 
item  df).     See  139. 

FEBRUARY  27. 
He   pays   for  2,000   four-inch   tile   at   $12.50   a   thousand.     Check   No.    10. 

102.  First.— Expense  (Plate  49,  item  eg).     See  161  and  162. 
Second. — Credit  Bank  for  check  No.  10  (Plate  48,  item  dg). 

Refer  to  213. 

FEBRUARY  28. 
Cash  balance  amounts  to  $42.59. 

87 


HOIV  TO  KEEP  FARM  ACCOUNTS. 


Dr. 

TRIAL   BALANCE.   FEBRUARY,    1902. 

Cr. 

CB 

Cash                    1$      42 

59 

Plate 

61 

J.   Fox 

$  9984 

53 

Plate 

62 

Clovermcad        |   12900 

00 

" 

65 

Bills    Payable 

4800 

00 

70 

Expense                     381 

39 

" 

69 

Production 

2029 

3D 

" 

73 

Feed                     |       409 

71 

" 

74 

Implements        |       769 

00 

78 

E.    Wise              1       148 

1 

60 

^^ 

80 

Labor                  |        83 

25 

-' 

82 

Interest                       115 

80 

" 

84 

Taxes                  1         65 

28 

88 

First    Nat.    Bk.|     1898 

21 

' 

I$i68i3 

83 

I$i68i3 

ll 

Transactions  for  March,    1902 


HOW  TO  KEEP  FARM  ACCOUNTS. 


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TRA]SSACTIO>i^  FUR  MARCH,  lyuii. 

MARCH    I. 
Cash  on  hand  $42.59.     The   Bank  sends  him   his  cancelled  checks   for  February. 

MARCH  2. 
He  gives  Ed.  Wise   check  for  $20.00. 

First. — Charge  or  debit  Wise  (Plate  53,  item  ca).     See  178. 
Second. — Credit  the  Bank  for  the  check  (Plate  52,  item  db). 

See  213. 

MARCH  g. 
He  buys  a  pair  of  rubber  boots   for  himself,  $4.50,  and   gives  check  for  same. 

F^rst. — Debit  or  charge  Fox  for  the  amount  of  check  (Plate  53, 
item  cb).     See  110. 

Second.— Credit  Bank  (Plate  52,  item  dc).     See  213. 

MARCH  20. 
1,000  feet  of  Lumber  cost  $27.00,  and  he  gives  check  for  it. 

103.  First.— Expense  is  debited  (Plate  53,  item  cc).     See  162. 
Second.— Bank  credited  (Plate  52.  item  dd).     Refer  to  213. 

MARCH   31. 

104.  It  is  the  last  day  of  the  year,  and,  wisliiu>:  to  close  the 
I.edger.  he  gives  Ed.  Wise  credit  for  eleven  months"  labor,  as  per 
contract,  at  |300.00  a  year,  and  also  credits  himself  with  what  he 
thinks  is  a  fair  valuation  for  his  services  (?H00.00)  for  the  year. 
He  also  takes  an  inventory  and  balances  his  cash  for  the  month. 
Cash  on  hand,  |42.59. 

105.  If  we  have  a  man  hired  by  the  year,  we  open  an  ac- 
count with  him.  and  charge  him  for  the  money  we  pay  him  from 
time  to  time.  Then,  at  the  end  of  the  year  we  credit  him  with  his 
wages  for  the  year,  and  charge  it  to  labor. 

90 


HOW  TO  KEEP  FARM  ACCOUNTS. 


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Fox,  wishing  to  close  his  books,  now  credits  Wise  for 
the  11  months  wages  (Plate  52,  item  de)  and  also  credits  himself 
for  what  he  thinks  the  farmstead  should  pay  him  (Plate  52,  item 
df).  The  amount  credited  to  Wise  ($275.00)  and  himself  (|6(>n.00) 
should  now  be  debited  to  Labor,  and  this  he  does  (Plate  53,  item 
cd).     Refer  to  180  and  114,  also  184. 


Dr. 


TRIAL    BALANCE,    MARCH,    1902. 


Or. 


CB 

Cash 

$      4259 

Plate 

61 

J.    Fox 

Bills    Payable 
Production 
Ed.   Wise 

$10580 

03 

Plate 

62 

70 
-2 

Cloverniead 

Expense 

Feed 

12900  00 
40S39 
40971 

65 
09 

79 

4S00 

2029 

106 

00 

30 
40 

74 

Implements 

769  00 

80 

Labor 

95825 

82 

Interest 

iiS|8o 

84 

Taxes 

65I28 

88 

First    Nat.    Bk. 

1846J71 
1 

1 

I$i75i5|73 

$1751573 

105^.  The  Cash  Book  now  posted  for  the  year,  the  Trial 
Balance  is  as  given  above.  The  books  are  in  balance,  and  his 
cash  on  hand  is  $42.59,  which  will  be  the  first  entry  on  his  cash 
account  for  April,  when  he  begins  his  new  Ledger  for  the  coming 
year.  For  further  instructions  on  what  to  do  at  the  end  of  the 
year,  refer  to  the  Chapter  on  '"The  End  of  the  Year,"  which  im- 
mediately folows  the  Ledger  accounts. 

91 


Part   Six 

THE    LEDGER 


HOIF  ro  KEEP  FARM  ACCOUNTS. 


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THE   I'HOPHIETOKS  ACC^OUNT. 

106.  This  account  represents  the  owucre  interest  in  the 
farm.  It  shows  the  amount  of  bis  investment  in  the  beginning, 
tlio  additional  investments  lie  urakes  and  wlial  he  witlidraws.  It 
also  shows  at  (he  time  of  closinii  how  much  he  has  gained  or  lost 
and  his  net  capital  or  net  insolvency. 

107.  This  is  true  wiiether  there  be  but  one  proprietor  or  sev- 
eral, but  when  two  or  more  persons  unite  in  conducting  a  busi 
uess  it  is  called  a  partnershi]>.  In  cases  of  nan  ueisliiii.  an  ac- 
count is  opened  with  each  of  the  partner,  and  each  of  them 
credited  for  what  he  ])uts  into  the  business  and  debited  for  what 
he  withdraws. 

108.  Usually,  if  one  proprietor,  or  several,  two  accounts 
are  opened  with  each.  One  showing  the  investment  and  the  other 
(])rivate  account)  showing  what  he  draws  for  iicrsoual  use  and 
his  salarT,  if  any.  Hut  for  ordinary  farm  purposes  two  acounts 
are  not  necessary.  In  this  set  the  proi)netor's  account  includes 
his  personal  account  as  well,  and  at  the  end  of  the  year,  he  is 
credited  \\itli  the  salary  to  which  he  thinks  he  is  entitled  and  the 
nci  gain,  if  a  paiM  ncrshi]).  each  pariiicr's  account  would  be  kept 
in    the  same   maniu'r — the   division   of    the   net    gain   or  net    loss 

94 


HOW  TO  KEEP  FARM  ACCOUNTS. 

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divided  pro-rata  or  as  agreed  uijon  when  the  af!,reeinent  or  partner- 
ship was  entered  into.  This  account  is  debited  and  credited  as 
follows: 


DEBIT. 

CREDIT. 

109.     For  all  the  capital  he 

112.     For    his    net    invest- 

witlidraws from  the  business. 

ment  at  the  be<>;iuniuf;  of  busi- 

110.    For  all  cash  he  may 

ness  whicii  is  found  by  deduct- 

draw   or    products    he    takes 

ing  the  sum  total  of  his  Liabil- 

from time  to  time,  for  his  per- 

ities from  the  sum  total  of  his 

sonal  use. 

Resources. 

111.     For  his    net    loss    as 

113.     For  all  additional  in- 

shown by  the  Loss  and  Oain 

vestments. 

account  at  the  end  of  the  year. 

114.     For  salary  allowed,  if 

any. 

115.     For  his  net   gain   as 

shown  by  the  Loss  and  Gain 

account  at  the  end  of  the  year. 

TO  CLOSE  THIS  ACCOUNT  AT  THE  END  OF  THE  YEAR. 

116.     After  all  the  accounts  in  the  Led<>er  showinj:  losses 
and  a;ains  have  been  closed  into  the  IjOss  and  Gain  account — debit 


HOW  TO  KEEP  FARM  ACCOUNTS. 


or  credit  tbis  account  for  the  net  loss  or  net  gain,  as  shown  by  the 
Loss  and  Gain  account.  Now.  find  the  difference  between  the  two 
sides.  If  the  credit  side  is  the  larj^er.  write  on  the  debit  side  in 
red  ink  "To  Balance"  and  the  aniouut  of  the  difference  which  will 
make  the  account  balance.  Then,  rule  the  closing  lines  with  red 
ink  and  entor  in  black  ink  the  total  amounts  between  them. 
After  which,  write  on  the  credit  side  just  below  the  closing  lines 
in  black  ink  the  date  beginning  the  new  year,  and  the  amount  of 
the  difference  between  the  sides  of  the  account  which  is  the 
Present  Worth. 

Refer  to  Plate  61  and  62  and  you  will  see  that  the  net  gain 
of  Fox  is  $2,123.57  which  we  credit  to  him.  and  then,  to  balance 
the  account  we  write  in  red  ink  on  the  debit  side  the  difference 
between  the  sides,  i  e:  |12,7()3.60  and  the  wi)rds  "To  Balance." 
We  then  rule  tlie  closing  lines  and  bring  down  on  the  credit  side 
in  black  ink  the  date  and  the  amount,  i|12,703.60 — which  is  hi& 
"Present  Worth"  at  this  time. 


96 


HOW  TO  KEEP  FARM  ACCOUNTS. 


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THE  FAKMSTEAD. 

117.  This  account  is  in  some  respects  equivalent  to  the 
capital  stock  account  of  a  corporation.  The  proprietoi"s  account 
represents  the  owner's  interest  in  the  business,  and  this,  the  busi- 
ness itself.  The  principal  difference  is,  that  this  account  continues 
to  stiiTid  niitouched  from  year  to  year  unless  we  add  more  acreage 
to  the  farm  or  sell  from  it  a  part.  Therefore,  the  farmstead  ac- 
count should  be  debited  and  credited  as  follows: 


DEBIT. 

CREDIT. 

118.     At  the  beginning  for 

120. 

For     what 

we 

sell 

what  it  costs  us. 

from  it. 

119.     l'(.r      all      additional 

land  which  wo  buy  to  include 

in  its  acreage. 

REAL  ESTATE. 

121.     Perhaps  you  may  own  other  farms  beside  the  one  you 

work,  or  it  ma.v  be  property  in  town.     You  rent  them  and  wanting 

to  know  wlial  (lu-y  jiay  you  on  the  investment,  you  open  an  account 

with  each.     In  such  cases  it  is  best  to  enter  them  by  name,  such  as 

98 


HOW  TO  KEEP  FARM  ACCOUNTS. 

U/aff  6i         CJ^^n/i^ffu^  c^dTTn/                C-^ 

/^c% 

*  %An' 

91 

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00 

^^-- 

^^^-^ 

^^.^^ 

r 

zp^'^-— — ■ 

'    />-foo 

00 

"Beechwood  Farm"  or  the  "Brown  Property."     Debit  and  credit 
as  follows: 


DEBIT. 

CREDIT. 

122. 

When  books  are  open- 

126. 

For  all  rentals. 

ed  for 

value. 

127. 

For    the    amount 

it 

123. 

For      all      improve- 

brings 

if  jou  sell  it. 

ment. 

124. 

For  all  taxes. 

125. 

For  all  insurance. 

xVT  THE  END  OF  THE  YEAR. 

128.  To  close;  write  on  the  credit  side,  in  red  ink,  "By 
Inventory''  for  the  amount  of  valuation.  The  amount  the  credit 
side  exceeds  the  debit  is  tlie  gain,  and  next,  write  ou  the  debit  side, 
in  red  ink,  "To  Loss  and  Gain"  for  antount  of  the  gain.  Rule 
the  closing  lines  and  enter  the  totals  between  them.  Next,  write 
in  black  ink  under  the  closing  lines  on  the  debit  side  "To  In- 
ventory" and  the  amount  of  valuation.  Carrying  the  amount  of 
gain  to  the  debit  side  of  "Loss"  "Gain"  account,  writing  in  black 
ink.  "By  Beechwood  Farm"  and  amount  trained. 

In  case  the  debit  side  exceeds  the  credit  it  will  be  a  loss,  and 
in  that  case  the  entries  are  similar  to  those  closing  any  account 
showing  a  loss  as  explained  under  the  various  accounts  in  the 

illustration. 

99 


HOW  TO  KEEP  FARM  ACCOUNTS. 


BUILDING   AND   IMPKOVEMENTS. 

129.  "The  rule  of  law  is,  and  for  centuries  has  been,  that 
whosoever  owns  land  owns  all  there  is  above  it  and  alh  there  ia 
below  it.  Naturally  then,  when  bujiug  or  selling  farms  all, 
buildings  and  everything  fairl.v  belonging  to  them  go  i*ith  the 
farm.  In  general,  whatever  the  owner  of  the  farm  fastens  to  the 
ground  or  to  a  building  is  a  fixture  and  he  sells  it  when  he  sells 
the  farm." — Parson's  Laws  of  Business. 

Therefore,  after  a  farm  is  imi)roved,  having  good  fences,  is 
well  tiled,  and  with  satisfactory  buildings,  the  small  annual  ex- 
penditures to  maintain  the  farmstead  might  as  well  be  charged  to 
"pjxpense"  unless  there  is  some  specific  reason  fur  doing  other- 
wise. 

But  if  your  farm  is  unimproved  and  a  new  house,  barn,  fences 
and  tiling  is  needed  or  anticipated,  an  account  should  be  opened 
for  "Building  and  Improvements"  and  all  money  paid  for  such 
items  should  be  charged  to  it.  Then  at  the  end  of  the  year  when 
the  books  are  closed  this  account  should  be  credite<l  "By  In- 
ventory" for  the  sum  total  of  the  debit  side  of  the  account,  less 
a  certain  percentage,  say  ten,  which  should  be  charged  to  the 
"Loss  and  Gain"  account  each  year  for  depreciation.  By  doing 
this  the  first  cost  of  building  and  improvements,  which,  of  course, 
will  con.stantly  depreciate,  is  distributed  equally  for  a  period  of 
years. 

If  I'ox.  in  the  illustr;ilioii  giv<'n  herein,  had  had  a  "Building 
and  Improvements"  account,  the  proper  entry  for  the  Stock  Scales 
he  bought  July  22d  (Plate  21,  item  cb)  would  have  been  to  charge 
them  to  that  account  instead  of  "Expense,"  but  as  his  farm  is  im- 
proved, it  is  better  in  such  cases  to  call  items  a  loss  at  once  than  to 
open  an  account  on  purpose  for  IJiem.  However,  this  is  a  matter 
of  opinion,  and  the  disposition  of  such  items  must  be  decided  by 
the  owner  of  the  farm'. 

When  you  have  a  "Building  and  Improvements"  account  you 
should  debit  and  credit  as  follows: 

100 


HOIV  TO  KEEP  FARM  ACCOUNTS. 


DEBIT. 

CREDIT. 

130.     For  the  value  of  the 

133.     At    the    end    of    the 

buildiugs    and    improvements 

year  "By   Inventory"   for  the 

as  shovpn  by  the  inventory. 

sum  total  of  the  debit  side  less 

131.     For  the  cost  of  any 

a  certain  percentage,  say  ten, 

buildinfjs  or  improvements  we 

for  annual  depreciation. 

may  build  or  put  in  during  the 

134.     By  Loss  and  Gain  for 

year. 

the     difference     between     the 

133.     For    all    repairs    we 

sides.     (See  below.) 

have  made  on   buildings. 

AT  THE  END  OF  THE  YEAR. 

135.  To  close  this  account:  After  having  decided  what 
per  cent,  of  depreciation  you  are  going  to  charge  annually  for 
"wear  and  tear"  or  having  estimated  their  present  value,  write 
on  the  credit  side  in  red  ink  "By  Inventory"  and  the  amount. 

Now  find  the  difference  between  the  sides,  and  the  amount 
the  debit  exceeds  the  credit  side  will  be  a  loss  which  enter  on 
tlie  credit  side  in  red  ink  "By  Loss  and  Gain"  and  the  amount 
of  difference  which  will  make  the  account  balance. 

Rule  the  closing  lines  and  enter  the  totals  between  them  in 
black  ink. 

Next,  write  on  the  debit  side  below  the  closing  lines,  in  black 
ink,  "To  Inventory"  and  bring  down  the  amount  credited  when 
the  account  was  closed. 

Now,  carry  the  amount  lost  over  to  the  "Loss  and  Gain"  ac- 
count, writing  on  the  debit  side  of  that  account  in  black  ink 
"To  Building  and  Improvements"  for  the  amount  lost. 


101 


HOW  TO  KEEP  FARM  At. 

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BILLS   PAYABLE. 

136.  This  is  an  account  of  the  notes  we  give  to  othei-s, 
hence  Bills  Payable,  because  we  have  to  pay  them.  Whenever 
we  give  a  note  we  credit  Bills  Payable,  and  when  we  pay  that  note, 
we  debit  Bills  Payable.  From  this  you  Avill  understand  that  the 
difference  between  the  two  sides  of  this  account  should  at  all 
times  agree  with  the  amount  of  notes  we  owe.     Therefore: 


DEBIT. 

CREDIT. 

137.     When    we    i)ay    any 

138.      At     the     commence- 

note or  notes  we  owe. 

ment  of  business  with  all  the 

notes  we  owe. 

139.     For  all  notes  we  give 

to  other  parties,  made  by  us 

payable  to  them. 

AT  THE   END   OF  THE  YEAR. 

140.  In  closing  this  account  at  the  end  of  the  year,  find 
the  difference  between  the  sides  and  then  write  on  the  debit  side, 
in  red  ink,  "To  Balance"  for  the  difference  which  will  make  the 
account  balance.  Rule  the  closing  lines  and  enter  in  black  ink 
the  total  amount  between  them.  Next  write  on  the  credit  side 
below  the  closing. lines  "By  Balance"  in  black  ink  for  the  differ- 
ence between  the  sides  of  the  account  which  should  exactly  agree 
with  the  amount  of  notes  we  owe.     (See  Plates  64  and  65.) 

This  account  is  never  closed  unless  it  balances  or  it  is  nec- 
essary to  forward  to  a  new  page.    As  the  farmer  will  find  it  best 

102 


HOIV  TO  KEEP  FARM  ACCOUNTS. 


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to  have  a  new  Ledger  each  year  this  account  is  closed  us  above 
at  the  eud  of  the  year. 

When  transferring  tlie  balance  to  the  new  Ledger,  be  sure 
you  enter  the  balance  on  the  credit  side.  In  transferring  any 
account  enter  the  balance  on  the  side  of  the  new  account  upon 
which  it  was  brought  down  on  the  old. 

141.  WHEN  YOU  PAY  YOUK  NOTES  SECURED  BY 
MORTGAGE.— The  notes  Fox  has  given  to  the  First  National 
Bank  are  secured  by  mortgage.  When  paying  notes  thus  secured, 
as  he  did  Januaiy  2nd,  (See  Plate  64)  he  doesn't  destroy  them  when 
paid,  but  keeps  them  until  all  are  taken  up,  for  it  is  absolutely 
necessary  they  be  kept  until  the  mortgage  is  discharged. 

143.  TIME  OR  SIGHT  DRAFTS.— These  are,  technically 
speaking,  "Bills  Payable"  and  you  will  not  under  ordinary  cir- 
cumstances have  much  to  do  with  drafts,  but  if  a  draft  should  be 
made  on  you  for  one,  three  or  five  days  sight  and  you  accept  it — 
when  paid  charge  the  person  making  it  as  it  is  a  cash  transaction. 
For  instance:  If  you  write  Clay  Robinson  &  Co.  to  send  you  a 
car  load  of  "feeders"  or  "stockei's,"  charge  the  amount  of  their 
draft  on  you  to  your  Production  or  Live  Stock  account,  writing  in 
the  explanation  column  of  your  Cash  Book  the  details  of  the 
transaction. 


103 


HOW  TO  KEEP  FARM  ACCOUNTS. 


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BILLS  RECEIVABLE. 

143.  If  you  loan  money  or  sell  auy  of  your  farm  products 
taking  a  note  for  the  amount,  it  is  receivable  by  you.  and  con- 
sequently must  be  debited  to  Bills  Receivable.  You  take  notes 
for  two  reasons:  In  case  of  legal  proceedings  you  do  not  have  to 
prove  the  account,  or  if  needing  money  you  can  hnvc  them  di.s- 
c(tuuted  at  your  bank.     In  the  beginning 


DEBIT. 

CREDIT. 

144.     For     .ill     notes     you 

147.     When     any     of     the 

have  on  hand  payable  to  you. 

notes  you  hold  are  ]nu(l. 

145.     For  all  notes  you  get 

148.     For     all     notes     vou 

from  others  made  or  accepted 

have  discounted  or  sell. 

In  your  favor. 

149.     For  nil  notes  you  en- 

146.    For    all    notes    made 

dorse  over  to  other  parties. 

payable   to   others  and    trans- 

ferred by  them  to  you. 

AT  THE  END  OF  THE  YEAR. 

150.  This  account  like  Bills  I'ayable.  is  never  closed  in 
actual  business  unless  it  balances  or  it  is  necessary  to  forward 
to  a  new  page.  On  the  farm  it  is  advisable  to  open  a  new  Ledger 
each  year,  therefore,  the  account  is  closed  at  the  end  of  the  year 
as  follows: 

Find  the  difference  between  the  sides  and  write  on  the  credit 
side  "By  Balance"  for  this  difference  which  will  make  it  balance. 
Then  rule  the  closing  lines  and  enter  the  total  amounts  between 
them.  Next  write  on  the  debit  side  beneath  the  closing  lines  in 
black  ink  "To  Balance''  for  the  iiiinnint   of  the  difference  which 

104 


HOW  TO  KEEP  FARM  ACCOUNTS. 

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should  exactly  af;ree  with  the  amount  of  notes  you  have  on  hand. 
In  transferring  this  balance  to  a  new  page  or  a  new  Ledger  it  must 
always  be  entered  on  the  same  side — the  debit. 

151.  If  the  maker  of  a  note  cannot  pay  it  in  full  when  due, 
but  makes  a  part  paym'ent.  credit  "Bills  Receivable"  for  what 
he  pays  and  endorse  on  the  back  of  the  note  the  amount  received. 

153.  If  he  wants  to  renew  it,  simply  debit  "Bills  Eeceivable" 
for  the  new  note  you  get  and  credit  "Bills  Receivable"  for  the  old 
note  you  surrender  to  him. 

153.  When  you  discount  a  note — credit  "Bills  Payable"  for 
the  face  of  the  note  and  charge  the  discount  deducted  by  the  bank 
to  "Interest." 

154.  Notes  are  alwavs  debited  or  credited  at  face  value. 


105 


HOJV  TO  KEEP  FARM  ACCOUNTS. 


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PRODUCTION. 

155.  As  simplicity  in  the  first  essential  in  account  keeping 
on  the  farm,  after  accuracy,  it  is  necessary  to  lessen  the  number 
of  accounts  opened  in  tlie  Ledger  as  far  as  practicable.  The 
merchant  credits  his  "Merchandise"  account  for  the  amount  of 
his  sales,  the  manufacturer  credits  them  to  "^lanufacturing."  The 
farmer  can  be  likened  to  the  manufacturer  because  he  is  a  pro- 
ducer and  either  grows  or  finishes  tht>  products  of  his  farm.  The 
most  comprehensive  title  for  iiis  sales  is  "Production."  It  isn't 
a  simple  matter  to  keep  an  account  with  each  field.  Much  guess- 
ing or  weighing  must  be  done  to  do  this,  and  the  details  soon  grow 
irksome  with  no  practical  results  at  the  end  of  the  year  to  show 
for  the  extra  work  required.  In  the  end  it  all  goes  into  the  Pro- 
duction account  anyway,  so  there's  mighty  little  argument  to 
present  for  separate  accounts  with  the  different  products  and  kinds 
of  stock.     But  the  simplicity  of  crediting  all  sales  to  Production 

106 


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HOW  TO  KBBP  FARM  ACCOUNTS. 


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is  clear  to  every  one.     (See  paragraph  48  for  further  remarks  re- 
lating to  this  subject.) 

In  beginning,,  all  live-stock  and  products  are  charged  to  this 
account.  At  the  end  of  the  year  it  is  credited  with  what  is  on 
hand,  the  difference  between  the  two  sides  showing  the  sales  for 
the  year.  Then  this  difference  carried  to  the  Loss  and  Gain  ac- 
count is  opposite  the  items  showing  the  expenses  of  operating  the 
farm  and  the  difference  between  them  shows  the  net  results  of  the 
gain  or  loss  of  the  farmstead's  management  for  the  year.  This  is 
the  practical  side  of  farm  accounting,  therefore,  we  debit  and 
credit  the  Production  account  as  follows: 


DEBIT. 

CREDIT. 

156.     In  the  beginning  for 

158.     For   evei-ything   sold 

all  grain,  hay  and  live-stock  of 

we  raise  on  the  farm. 

every  kind  we  have  on  hand 

159.     For  all  live-stock  sold 

at  the  market  price  of  each. 

either  grown  or  bought  to  feed 

157.     For  all  live-stock  we 

and  fatten. 

buy  during  the  year. 

107 


HO IV  TO  KEEP  FARM  ACCOUNTS. 


AT  THE  END  OF  THE  YEAR. 

160.  To  close  this  acoounT:  We  write  mi  tin-  credit  side, 
in  red  ink,  the  amount  of  all  stodc  and  produce  we  have  on  hand 
as  shown  by  the  inventory.  Then  find  tlie  difference  between  the 
two  sides,  and  the  amount  the  credit  side  exceeds  the  debit  will 
be  the  gain  or  amount  of  sales  for  the  year.  Next  write  on  the 
debit  side,  in  red  ink,  "To  Loss  and  Gain"  for  amount  gained  or 
difference  between  the  sides  which  makes  the  account  balance. 
Now,  rule  the  closing  lines  and  enter  the  total  amounts  be- 
tween them,  after  which  write  on  the  debit  side  below  the  closing 
lines,  the  date,  "To  Inventory"  and  the  amount  of  the  inventory 
all  in  black  ink.     (See  Plates  68  and  69  as  an  example.) 

After  closing  tlie  account  as  above,  the  amount  gained  (in  the 
example  given  $4,043.50)  is  carried  to  the  credit  side  of  the  Ix)ss 
and  Gain  account  (See  Plate  fll)  writing  on  the  credit  side  of  that 
account,  in  black  ink,  "By  Production"  and  the  amount  gained. 


108 


HOJV  TO  KEEP  FARM  ACCOUNTS. 


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EXPENSE. 

161.  No  business  can  be  conducted  without  some  e.xpense. 
and  in  keepintj  the  farmstead  up  to  the  hiuhest  plane  of  its  earn- 
ing capacity  there  are  numerous  items  which  must  be  charixed  to 
this  account  during  the  year.  As  a  general  rule  all  items  are  a 
loss  which  go  into  general  improvements  or  that  cannot  be  in- 
ventoried at  the  end  of  the  year,  and  should  be  (•liar!j;ed  to  this  ac 
count,  therefore,  we  debit  and  credit  it  as  follows: 


no 


HOW  TO  KEEP  FARM  ACCOUNTS. 

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DEBIT. 


162.  For  everything  we 
buy  to  iise  on  the  farm  and 
not  to  sell  again  such  as  sta- 
tionery, lumber,  nails,  fertil- 
izers, seed,  tile,  etc.,  etc. 

163.  For  all  we  pay  out  for 
freight,  express  charges,  horse 
shoeing,  threshing,  etc.,  etc. 


CREDIT. 


164.  For  anything  we  sell 
which  has  been  debited  to  this 
account. 


Ill 


HO IV  TO  KEEP  FARM  ACCOUNTS. 


AT   TMK    KM)   <)i'    TIIi:    VHAIJ. 

165.  Ill  closing  this  account  lind  the  difference  between  the 
sides,  if  anvthinii  has  been  credited,  if  not,  write  on  the  credit 
side,  in  red  ink,  "By  Loss  and  Gain"  and  the  amount  to  make  the 
account  balance.  Now,  rule  the  closiiifi  lines  and  enter  the 
amount t  in  hhick  ink  between  tliciii.  Next,  write  on  the  debit 
side  of  the  Loss  and  Gain  account  "To  Expense"  for  the  amount 
of  loss.  For  an  example  refer  to  Plate  70  and  71  and  look  up 
the  Loss  aud  Gain  account  (Plates  90  and  91). 


112 


HOIV  TO  KEEP  FARM  ACCOUNTS. 


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FEED. 

166.  This  could  Ik'  imludetl  iu  the  Expense  account,  but  as 
most  stockmen  and  farmoi-s  will  want  to  know  how  much  thev 
l>;i.v  out  for  feed  durjn{»'  the  year  it  is  iH^st  that  an  account  bi- 
opened  with  it. 


DEBIT. 

CREDIT. 

167.     b\)r  all  feed  on  hand 

169.     For  any  feed  we  sell 

M      the      commencement      as 

which     had     be<Mi     previously 

.shown  by  the  inventory. 

charged  to  this  account. 

168.     For  all   that  we  buy 

during  the  year. 

114 


HOW  TO  KEEP  FARM  ACCOUNTS. 


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AT  THE  END  OF  THE  YEAR. 

170.  To  close  this  account  at  the  end  of  the  year,  write  oh 
the  credit  side,  in  red  ink,  "By  Inventory"  for  the  value  of  the 
feed  we  have  on  hand.  Find  the  difference  between  the  two 
.sides  and  write  on  the  credit  side,  in  red  ink,  "By  Loss  and  Gain'' 
for  that  difference,  which  will  make  the  account  balance.  Bale 
the  closing  lines  and  write  between  them  in  black  ink  the  totals. 
Next  brinp  down  the  amount  of  inventory  in  black  ink  on  the 
debit  side,  writing  the  date  and  "To  Inventoi^y."  Then  enter  on 
the  debit  side  of  the  "Loss  and  Gain"  account  "To  Feed"  for 
the  amount  of  Loss  on  this  account.  (See  Plates  72  and  73  and 
i-efer  to  Plate  90. 


115 


HOW  TO  KEEP  FARM  ACCOUNTS. 


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IMPLEMENTS. 

171.  Implements  on  the  farm  are  the  same  as  the  tools 
and  appliances  of  the  manufacturer.  They  are  a  visible  asset 
and  their  worth  depends  greatly  on  the  care  taken  of  them. 
It  is  customary  anionic  manufacturers  to  deduct  from  tli.-ir  in- 
ventory of  machinery  a  certain  per  cent,  for  *'wear  anc]  tear." 
This  of  course  depends  on  its  condition  and  also  whether  it  is  of 
a  style  and  pattern  not  superceded  by  one  later  and  much  more 
desirable.  But  the  per  cent.  deducte<I  for  depreciation  must  b.» 
decided  by  the  farmer  himself.  No  hard  and  fast  rules  can  be 
laid  down  for  that.  This  account  is  debited  and  credited  as  fol- 
lows: 


DEBIT. 

CHEUIT. 

172.     For    the    amount    on 

174.     For  all  that   w<-  sell. 

hand  as  shown  by  the  inven- 

175.    For  amount  on  han.l 

tory  at  the  beginning  of  busi- 

as shown  by  inventory  at  the 

ness. 

end  of  the  year. 

173.     For  all   we  buy  dur- 

ing the  year. 

116 


HOW  TO  KEEP  FARM  ACCOUNTS. 

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AT  THE  END  OF  THE  YEAR. 

176.  To  close  this  account  at  the  end  of  the  year:  Same 
as  the  Feed  account  which  immediately  precedes  this.  See  plates 
74  and  75  and  compare  amount  carried  forward  to  Loss  and 
<  Jain,  Plate  90. 


117 


HOW  TO  KEEP  FARM  ACCOUNTS. 


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t^AKM  HELP. 

177.  It  isn't  npcossary  to  open  an  account  with  the  dif- 
ferent men  employed  on  the  farm  by  the  day.  That  should 
be  charged  to  the  Labor  Account.  But  if  we  hire  a  man  or  men 
by  the  year  then  a  separate  account  should  be  opened  for  each 
and  all  money  paid  to  them  from  time  to  time  charged  direct 
to  them,  and  the  wages  allowed  each  credited  to  them  at  the 
end  of  the  year.  The  example  of  the  Wise  account  (Plates  78 
and  79)  show  how  an  account  should  be  kept  when  we  hire  a 
man  by  the  year.  Accounts  of  this  nature  are  debited  and  cred- 
ited as  follows: 


DEBIT. 


178.  For  the  amounts  we 
pay  him  from  time  to  time. 

1T9.  For  all  farm  products 
taken  in  lieu  of  cash  on  ac- 
count during  the  year. 


CREDIT. 


180.  At  the  end  of  the 
year  for  amount  of  wages 
agreed  on. 


118 


HOW  TO  KEEP  FARM  ACCOUNTS. 

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AT  THE  END  OF  THE  YEAR. 

181.  To  close,  liud  the  difference  between  the  two  sides  and 
enter  on  the  debit  side,  in  red  ink,  "To  Balance"  and  the  amount 
which  will  make  the  account  balance.  Now,  rule  the  closing 
lines,  enter  the  totals  between  them  and  bring  down  in  black 
ink  the  amount  of  the  difference,  entering  it  on  the  credit  side 
''By  Balance"  which  is  the  amount  due  or  to  his  credit  at  the 
end  of  the  year.     (See  Plates  78  and  79.) 


119 


HOW  TO  KEEP  FARM  ACCOUNTS. 


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LABOR. 

183.  As  previously  explained  under  the  account  precedinj" 
this  (Farm  Help)  we  open  an  account  for  each  man  employed  i>n 
the  farm  by  the  year,  and  also  a  Labor  account  to  which  we 
charge  all  sundry  help  hired  fnmi  time  to  time. 


DEBIT. 


183.  For  all  wages  paid 
sundry  help  from  time  to  time 
duiing  the  year. 

184.  At  the  end  of  the 
year  for  the  wages  we  agree  to 
pay  the  men  whom  we  hire 
by  the  year  and  with  whom 
we  have  opened  separate  ac- 
counts. (See  Wise,  Plate  79. 
1m)x.  Plate  61,  and  Cash  Book 
for  .March.  1902.  Plates  52  and 
53,  items  de,  df,  and  cd. 


CREDIT. 


120 


HOW  TO  KEEP  FARM  ACCOUNTS. 


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AT  THE  END  OF  THE  YEAE. 

185.  To  close,  enter  on  the  credit  side,  in  red  ink  "By  Loss 
and  Gain"  and  the  total  amounts  paid  for  Labor  as  shown  by  the 
footing  of  the  debit  side.  This  balances  the  account.  We  then 
rule  the  closing  lines — enter  the  amounts  between  them  and 
caiTy  the  amount  entered  on  the  credit  side  in  red  ink  to  the 
debit  side  of  the  Loss  and  Gain  account.  (See  Plates  80,  81 
and  90.) 


121 


HOW  TO  KEEP  FARM  ACCOUNTS. 


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INTEREST. 

186.  If  we  havo  interest  to  pay  or  hold  notes  which  dra\\ 
interest  we  must  open  an  account  with  it.  Then  it  will  shov 
us  at  the  end  of  the  year  what  we  are  paying  for  the  use  of  money 
borrowed  or  what  our  loans  are  paying  us. 


DEBIT. 

CREDIT. 

187. 

For  any   interest  we 

189.     For  any  interest   we 

P<%V- 

receive  on  notes  we  hold. 

188. 

For  any  discount  the 

bank   deducts    from    the    face 

of  notes 

we  have  discounted. 

122 


HO IV  TO  KEEP  FARM  ACCOUNTS. 


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AT  THE  END  OF  THE  YEAR. 

190.  To  close  this  account  we  find  the  difference  between 
the  two  sides.  If  the  credit  side  is  larger,  we  write  in  red  ink 
on  the  debit  side  "To  Loss  and  Gain"  which  is  gain  on  interest. 
If  the  debit  side  side  be  the  larger,  we  write,  in  red  ink  on  the 
credit  side  "By  Loss  and  Gain"  which  is  loss  on  interest.  This 
makes  the  account  balance.  Now,  rule  the  closing  lines  and 
enter,  if  there  be  a  loss,  on  the  debit  side  of  the  Loss  and  Gain 
acocunt  the  amount  lost,  or  if  there  be  a  gain,  on  the  credit  side 
of  the  Loss  and  Gain  account  the  amount  gained.  (See  Plates 
82,  83  and  90.) 

191.  DISCOUNT. — As  discount  is  simply  anotlier  name  for 
interest  it  is  useless  to  open  a  separate  account  for  it,  but  call 
interest  and  discount  the  same  and  debit  or  credit  both  to  the 
Interest  account. 

192.  ENTRY  TO  MAKE  OF  NOTES  YOU  HAVE  DIS- 
COUNTED.— Sometimes  when  in  need  of  money  we  have  a  note 
discounted  at  the  bank.  If  you  do  tliis.  don't  forget  to  credit 
"Bills  Receivable"  for  the  full  face  of  the  note  and  debit  Interest 
for  the  discount  deducted  by  the  bank.  Then,  if  this  amount  has 
been  placed  to  your  credit  in  the  bank,  debit  the  bank  for  the 
amount  you  receive  or  the  proceeds  of  the  note. 


123 


HO IV  TO  KEEP  FARM  ACCOUNTS. 


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TAXE8   AND   INSURANCE. 

193.  It  is  ii  matter  of  gratification  to  know  what  our  Ta.xes 
and  Insuruucc  aimmnt  to  for  the  vcar.  All  we  pay  out  for  oithei 
should  be  charyc^d  to  this  account. 


DEBIT. 


194.     I'or  all  we  pay  for  In- 
surance or  Taxes. 


CREDIT. 


AT  THE  END  OF  THE  YEAR. 

195.  To  close,  write  in  red  ink,  on  the  credit  side  the  date, 
"By  Loss  and  dain"  and  the  amount  necessary  to  make  the  ac 
count  balance.  Then  rule  the  closing  lines  and  enter  between 
them  in  black  ink  the  totals  of  each  side.  (See  Plates  84  and  85.) 
Then  cany  the  amount  (o  the  Loss  and  Gain  account,  entering  it 
on  the  debit  side  of  that  account  as  shown  (Plate  90). 

196.  INSURANCE.— Every  farmer  and  stockman  is  vitally 
interested  in  Insurance  that  reallj-  insures.  And  very  fortunate 
i1  is,  too,  that  there  is  insurance,  in  such  form  as  to  keep  him 
ill  direct  touch  with  it,  and  his  interests  mutual  with  his  felloA\f!. 
Of  late,  it  is  almost  an  impossibility  to  iusure  farm  property  in 
some  states  in  good  Stock  Companies,  but  the  I'^irmer's  Mutual 

124 


HOW  TO  KEEP  FARM  ACCOUN 

TS. 

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Cos.  are  really  safer  and  much  more  desirable  in  evei'y  respect, 
then,  too,  the  cost  is  less.  Of  the  109  Mutual  Companies  writ 
ing  insurance  in  Ohio  in  1899.  twenty-five  of  them  made  no  as- 
sessments and  eight  had  no  losses!  The  average  saving  of  the 
Mutuals  in  comparison  with  the  Stock  Companies  has  averaged 
33  cents  on  every  .$1.00  of  insurance  written  on  the  three  year 
term  plan.  This  is  a  consideration  worth  taking  advantage  of 
for  "it's  the  little  leaks  in  business  that  eat  up  the  profits," 
and  it's  the  little  things  on  the  farm  that  tend  to  increase  them. 
No  really  good  business  man  neglects  to  insure,  and  no  farmer 
can  afford  to  carry  the  risk  of  fire  himself.  Every  intelligent 
farmer  understands  this  and  should  encourage  his  county  or- 
ganization. If  there  was  one-half  the  unity  of  purpose  and  well- 
directed  effort  on  the  part  of  the  farmers,  as  a  whole,  as  there 
is  among  other  business  men,  much  that  they  now  desire  and 
should  have  would  be  their's.  Stand  by  your  organization  and 
don't  be  afraid,  as  the  Kural  New  Yorker  says,  "To  use  the  post- 
age stamp  on  your  representatives  and  Congressmen  to  have  laws 
passed  and  enforced  which  will  help  yon,  and  those  repealed  that 
are  not  favorable  to  the  best  interests  of  agriculture." 


125 


HOIV  TO  KEEP  FARM  ACCOUNTS. 


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ACCOUNTS  WITH  I'EHSONS  TO  WHOM  WE  SELL  PRODUCE. 

197.  Tlic  faniKT  nsiiiilly  st'lls  liis  jnoduots  for  cash,  Bnt 
when  anything  is  sold  on  time  an  account  should  be  opened  with 
the  person  sold.  Then  all  products  sold  liiin  must  be  charfjed  to 
him  and  al!  payments  made  by  him  credited  to  him.  This  account 
ajjainst  the  C.  H.  &  D.  W.  \\.  is  equivalent  to  a  personal  account, 
as  we  have  charge<l  the  K.  K.  Co.,  for  the  amount  of  seed  corn  lost 
while  in  their  hands,  and  have  given  them  <redit  for  their  check 
M'hen  it  was  paid.  Accounts  of  this  nature  are  treated  as  fol- 
lows: 


DEBIT. 

CREDIT. 

198.     I\»r  the  amount  they 

200.     For  all  cash  they  pay 

owe    us    when    we    open    our 

us   on   account. 

books. 

201.     l''or  anv  pi-oduce  they 

199.     For  all  we  sell  them 

return  on  account. 

OR  account. 

202.      I'or     all     notes     they 

give    us    in    s<>ttlement   of  ac- 

count oi'  to  apply  on  account. 

AT  THE   EXD   OF   THE   YEAH. 

203.  To  close,  at  the  end  of  the  year,  or  when  we  want  to 
tiiiusfer  to  a  new  page,  tind  the  difference  between  the  two  sid<-s, 
and  if  the  debit  side  be  the  larger,  write  on  the  credit  side,  in 
red  ink.  "By  Balance"  for  (he  amount  of  \\w  difference.  This 
ntakcs  the  account  balance  after  which  rule  the  closing  lines  and 
(•ntcr  between  them  the  totals  in  black  ink  carrying  the  amount 
necessary  to  make  the  account  balance,  forward  to  the  new  page 
or  to  the  new  Ledger,  writing  on  the  debit  side  in  black  ink  the 
date — "To    IJalaiuc"   ami    itie  amount,   writing   on    the  old   })age 

1S6 


HOIV  TO  KEEP  FARM  ACCOUNTS. 


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"To"  and  on  the  new  page  or  new  Ledger  "From"  which  the 
amount  was  transfered. 

If  the  credit  side  is  larger  then  the  "shoe  is  on  the  other  foot," 
and  you  will  write  on  the  debit  side  in  red  ink,  "To  Balance"  and 
11  mount  of  difference  between  the  sides  which  will  make  the  ac- 
count balance,  rule  the  closing  lines,  enter  the  totals  and  carry 
forward  the  amount  used  to  balance  to  the  new  page  or  the  new 
ledger  writing  on  the  credit  side  of  the  new  account  in  black  ink, 
the  date,  "By  Balance'"  and  the  amount. 

When  carrying  forward  an  account  to  a  new  page  or  a  new 
T^^dger  do  not  forget  to  write  on  the  old  page  "To"  which  and  on 
the  new  page  "From"  which  the  account  has  been  transferred. 

AOCX)UNTS  WITH  PERSONS  FROM  WHOM  WE  BUY  GOODS. 

204.  These  are  practically  the  same  as  the  accounts  we  keep 
with  persons  to  whom  we  sell  on  account,  and  we  debit  and  credit 
as  follows: 


DEBIT. 

CREDIT. 

205.  For  all  cash  we  pay 
oil  account. 

206.  For  all  goods  we  re- 
lurn  on  account. 

208.  For    wliat     we    owe 
them  when  we  open  our  books. 

209.  For  all  we  buy  from 
them  fi*om  time  to  time. 

207.     For  all  notes  we  give 
in  full  or  part  payment  of  ac- 
count. 

t 

AT  THE  END  OF  THE   YEAR. 
210.     These  accounts  ai-e  balanced  and  carried  forward  the 
same  as  explained  under  the  head  of  "Accounts  With  Persons  To 
Whom  We  Sell  Produce"  just  preceding  this,  which  see. 


127 


HOW  TO  KEEP  FARM  ACCOUNTS. 

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FIRST  NATIONAL  HANK. 
311.  It  isn't  necessary  to  open  an  account  with  your  Bank 
in  the  Ledger.  It  can  be  carried  along  in  tlie  Check  Book,  but 
taking  everything  in  consideration  it  is  preferable  to  have  it  in 
the  Ledger  on  the  farm.  Each  check  given  should  be  numbered 
(in  rotation  of  course)  no  matter  where  you  begin.  1  or  300.  and 
liiat  number  should  go  in  the  Cash  Book  and  be  posted  to  the 
Ledger  (See  Plate  89).  Then,  when  the  Bank  hands  you  your 
cancelled  checks,  compare  them  with  what  you  have  given  out. 
checking  each  one  on  the  Ledger.  You  know  tlMMi,  just  what 
checks  have  been  presented  for  payment  at   tlie  h;iiik. 


DEBIT. 


212.  For  all  currency, 
I  liecks.  money-orders  or  drafts 
we  deposit. 


CREDIT. 


213. 

make. 


For    all     checks    we 


12S 


HOW  TO  KEEP  FARM  ACCOUNTS. 


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314.  To  balance,  proceed  exactly  as  you  would  with  aa 
account  with  a  person  to  whom  you  sell  on  credit  as  explained 
under  ''Accounts  With  Persons  to  Whom  We  Sell  Produce"  for 
the  principles  are  the  same  in  both. 

215.  BANKS — Banks  are  a  convenience  the  business  farmer 
can't  afford  to  ignore.  They  are,  for  him,  safe  places  for  the 
keeping  of  money,  securities  and  other  valuable  paper.  The  pay- 
ment of  his  bills,  too,  is  more  convenient  by  check  than  with  cui*- 
rency,  and  the  checks  when  returned  by  the  bank  are  valuable  as 
receipts.  Banks  sometimes  become  insolvent,  it  is  true,  but  there 
are  safe  and  conservative  banks  in  every  county  seat,  or  perhaps 
in  a  town  still  nearer  to  you.  Select  your  banker  as  you  would 
a  friend.  Be  frank  with  him  and  never  test  his  generosity  by 
allowing  your  check  to  be  presented  for  a  larger  sum  than  your 
balance.  If  you  do  this  your  relations  will  be  pleasant,  and  if  in 
need  of  money  to  move  a  crop  or  carry  the  cattle,  sheen  and  hogs 
you  are  feeding  to  a  finish,  you  can  secure  it  from  him  at  reasonable 
rates,  providing,  of  course,  you  have  proven  yourself  to  be  a  man 
of  character  and   business  ability.     Then,  too,  there  are  many 

129 


HO IV  TO  KEEP  FARM  ACCOUNTS. 


"dou'ts"  in  business,  and  if  von  have  selected  vour  haiikvr.  as  you 
should,  he  is  the  man  to  go  to  for  advice  if  in  doubt  about  any 
business  transaction.  Assuminjr  that  you  have  a  bank  account, 
and  that  you  have  left  youi'  hank  book  Avith  them,  as  you  do  once 
a  month  to  liave  it  "wiitltn  n]>"  when  it  is  returned  to  yi)U  the 
balance  shown  by  it  should  a<:;ree  with  the  balance  shown  by  thc- 
account  you  keep  with  the  bank  in  your  Led^•er  or  clieck  book 
unless  some  of  the  checks  you  have  piven  out  haven't  been  i)re- 
sented  for  payment,  ^\llen  your  bodk  is  handed  to  you  witli  the 
checks  presented  for  payment  durinji  the  month,  stamped  paid, 
compare  these  cancelled  checks  with  those  you've  made,  and  you 
Mill  knoAv  just  what  ciiecks  are  still  out.  This  is  where  the  im- 
portance of  mimbei-int:  each  check  is  found  and  wliy  it  is  best  to 
have  a  bank  account  in  the  Ivedjjer  intended  for  farm  use. 


130 


HOIV  TO  KEEP  FARM  ACCOUNTS. 


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LOSS  AND  r.AIN. 

316.  This  account  is  kept  to  show  the  final  snniminj:  »p  of 
all  our  losses  and  gains  for  the  year  and  is  debited  and  credited 
as  follows: 


Debit. 


217.  At  the  end  of  the 
year  for  all  the  accounts  upon 
which  we  have  lost  during  tlie 
year. 


Credit. 


218.     At    the    end    of    the 

year  for  all  accounts  upon 
which  we  have  gained  during 
the  vear. 


AT  THE  END  OF  THE  YEAR. 

219.  To  close:  Find  the  difference  between  the  two  sides. 
If  the  debit  side  be  the  larger  the  amount  it  exceeds  the  debit  is 
the  net  gain  for  the  year.  If  the  debit  side  is  the  larger,  the 
amount  it  exceeds  the  credit  side  is  the  net  loss  for  the  year.  Re- 
ferring to  the  examnle  i  Plates  90  and  91).  the  credit  is  the  larger, 
so  we  enter  the  amount  it  exceeds  the  debit  side,  in  red  ink.  on 
the  debit  side,  the  date,  and  "To  -J.  Fox."  after  which  rule  the 
closing  lines  and  enter  between  them,  in  black  ink,  the  total  foot- 
ings. The  amount  the  credit  side  exceeds  the  debit  is  the  net  gain 
of  Fox  for  the  year,  and  after  this  account  is  closed,  we  carrv"  this 
amount  of  ?2,123.57  to  the  credit  side  of  the  J.  Fox  account.  Then 
to  find  his  present  worth,  proceed  as  explained  under  the  head  of 
"Proprietor's  Account"'  and  illustrated  by  Plate  (!0  and  Gl. 

132 


HOW  TO  KEEP  FARM  ACCOUNTS. 

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AT   THE   END   OF   THE   YEAR. 

320.  At  the  end  of  the  year,  when  your  Ledger  is  in  bal- 
ance, and  you  want  to  close  it  to  ascertain  what  you  have  made  01 
lost,  proceed  as  follows: 

pirst. — Take  an  inventory  of  all  Live-stock,  Products,  Imple- 
ments, Feed,  and  Real  Estate  you  have  on  hand  at  that  time. 

Second. — Close  all  accounts  in  the  Ledger  upon  which  losses 
or  o-ains  have  been  made,  as  instructed  under  each. 

Third. — Having  carried  all  accounts  upon  which  losses  or 
gains  were  made  into  the  Loss  and  Gain  account,  we  close  thai 
account  as  instructed.     (Refer  to  Loss  and  Gain  Account.) 

S21.  It  is  well  to  remember,  in  this  connection,  that  when 
we  close  the  Ledger  at  the  end  of  the  year,  nothing  is  left  in  it 
but  those  acounts  showing  either  a  Resource  or  a  -Liability,  and 
that  nothing  must  be  carried  to  the  Loss  and  Gain  account  but 
those  accounts  upon  which  we  have  lost  or  gained.  To  help  you 
decide  what  are  Losses  or  Gains  and  what  are  Resources  or  Lia- 
bilities, bear  in  mind  that  if  the  debit  side  of  an  account  is  the 
larger  it  is  always  either  a  Resource  or  a  Loss.  That  when  the 
credit  side  of  an  account  is  the  larger  it  is  always  either  a  Liability 
or  a  Gain.  As  the  Resources  and  Liabilities  are  not  carried  to  the 
Loss  and  Gain  account,  we  must  pass  them  by  and  do  nothing  with 
them.  But  if  the  debit  side  be  the  greater,  and  a  loss,  then  balance 
the  account  and  carry  the  loss  to  the  debit  side  of  the  Loss  and 
Gain  account.      If  the  credit  side  of  any  account  be  the  larger,  and 

133 


HOIV  TO  KEEP  FARM  ACCOUNTS. 


a  gain,  balauct;  the  account  and  carry  the  amount  of  tlie  <.Min  to 
the  credit  side  of  the  Loss  and  Gain  account. 

Wlicn  the  Ledger  is  closed  at  the  end  of  the  year,  there  must 
be  no  o]K'n  accounts  in  it,  except  those  which  show  a  Resource  or 
a  Liability,  and  this  is  also  true  when  the  Ledger  is  opened.  But 
before  the  Ledger  can  be  closed,  an  inventory  must  be  taken,  and 
the  one  taken  by  Fox,  Marcli  81,  1902,  to  illustrate  the  principles 
of  farm  accounting,  as  sliown  in  the  example  given  herein  fol- 
lows. Note  that  the  totals  of  the  Production,  Feed  and  Imple- 
ments on  hand  are  credited  to  each,  as  shown  on  Plates  68,  73  and 
75.  Full  instructions  follow  each  account  as  to  what  you  are  to 
do  after  the  inventory  has  been  taken  and  credited  to  each  of  the 
accounts  aliected. 


134 


HOW  TO  KEEP  FARM  ACCOUNTS. 


322. 

31,  1902. 


INVENTORY   OF  CLOVERMEAD   FARM,   MARCH 


PRODUCTION. 

Bay  Team  Jack  and  Jim $  i6o  00 

Bay   Mare   Queen 75  00 

Black   Mare   Bess 6000 

Two   Colts  at  $15.00 30  00 

Chestnut  ]^Iare 175  00 

Two  Cows  at  $35.00 70  00 

One  Calf 5  00 

15  Poland  China  Sows  at  $12.  180  00 

I   Berkshire   Boar 35  00 

98  Shropshire  Ewes  at  $5.00.  490  00 

I   Ram 45  00 

I   Ram 33  00 

I   Ram 30  00 

807  bu.  Corn  at  60c 484  20 

40  bu.  Potatoes  at  50c 20  00 

15  tons  Clover  Hay  at  $6.00.  .  90  00 

30  bu.   Seed   Corn  at  $1.00...  30  00 


$2014  20 


FEED. 

120  bu.  Oats  at  38c. .  .: $  45  60 

y2  ton  Middlings  at  $24.00...  12  00 

^  ton  Bran  at  $21.00 15  75 

%  bbl.  Salt  at  $1.50 75 


$     74  10 


IMPLEMENTS. 

One  Wagon $  60  00 

One  Farmers'  Handy  Wagon  39  00 

One  Surrey 120  00 

One  Buggy 30  00 

One  Spring  Tooth   Harrow..  14  00 

One  .-Kdjustable  Harrow  ....  12  00 

One  Roller 19  00 

Two  Plows  at  $15.00 30  00 

One  Cultivator 40  00 

One  Weeder 12  00 

One  Corn  Planter 27  00 

One  Grain  Drill 75  00 

One  Mower 40  00 

.Amount  up $  568  00 


Brought  up $  568  00 

One  Cahoon  Seeder 3  00 

One  Tedder 23  00 

One  Corn  Sheller 5  00 

One  Hay  Rake 20  00 

One  Hay  and  Stock  Rack...       12  00 
Two  Sets   Heavy   Harness  at 

$36.00 72  CO 

One   Set   Light   Harness 2000 

Also  Axes,  Forks,  Log  Chains, 
Three  Horse  Eveners, 
Wheelbarows  and  other 
Miscellaneous  tools  about 
the  place 10  00 

$  732  00 
Less    30%    discount    for    the 
"wear     and     tear''     of     six 
years'  use   219  60 

$  512  40 

One  Binder $  100  00 

One  Corn  Harvester 100  00 

$  200  00 
Less  5%  for  one  year's  depre- 
ciation         10  00 

$  190  00 


One  Chicago  Sheep  Shearing 

Machine 5  I5  00 

One   Bob   Sled i5  00 

Brought    down 51-4° 

Brought   d«wn 190  00 

$  732  40 


RECAPITULATION. 

Production $2014  20 

Feed 74  10 

Implements $  732  40 

'$2820  70 


135 


HOW  TO  KEEP  FARM  ACCOUNTS. 


THE   YEARLY   STATEMENT. 

223.  \\'(>  kci-p  ail  account  with  our  farmstead,  so  that  we 
cau  tell  our  actual  financial  conilition  at  least  once  a  year.  After 
the  Ledger  is  closed,  to  fjet  the  facts  before  us  in  a  nutshell,  we 
make  an  annual  statement.  To  keep  an  account  for  a  number  of 
years,  and  compare  the  last  with  those  that  precede  it.  is  a  great 
aid  to  successful  farming,  because  it  shows  us  what  branch  of  our 
manai:ement  needs  more  care  and  attention.  The  facts  we  are 
able  to  glean  from  the  statement  made  up  at  the  end  of  the  year 
as  to  our  progress,  more  than  pays  us  for  the  labor  required  to 
keep  the  Ledger,  as  it  must  be  kept,  to  get  accurate  results.  To 
present  these  benefits  more  fully  we  give  the  statement  as  Fox 
would  make  it  from  his  Ledger,  illustrated  in  the  preceding  pages. 
The  statement  follows: 


ANNUAL    STATEMENT    OF    CLOVEKMEAD    lAKM. 

MAHCH   31,   1902. 

RESOURCES.  LIABILITIES. 


CB 

La.-,h 

$      42  59 

6s 

Bills   Payable 

$  480000 

62 

Clovermead 

1290000 

79 

E.   Wise 

106  40 

66 

Production 

2014 

20 

61 

J.  Fox,  Present 

Worth     1270160 

72 

Feed 

74 

10 

74 

Implements 

732 

40 

88 

First   Nat'l.   Bank 

1846 

71 

$17610 

00 

$17610 

00 

LOSSES. 


GAINS. 


«><<:; ' 

90       Expense 

$  408 

39 

91       Production                           $4043  5° 

90       Feed 

334 

61 

90      Implements 

36 

60 

90       Labor 

958 

25 

90       Interest 

iii 

80 

90      Taxes  and  Insurance 

65 

28 

90      J.  Fox,  Net  Gain 

2123 

57 

$4043  50 

1 

$401,' 

?o 

RESOURCES    AND    LIABILITIES. 

224.     of  course,  you  undei*stand.  if  you  have  studied  the  in- 
structions, there  are  no  oi)en  accounts  in  the  Ledger  at  the  end 

136 


HOW  TO  KEEP  FARM  ACCOUNTS. 


of  the  year,  after  tbe  books  are  closed,  except  those  showing  a 
Resource  or  a  Liability.    To  make  up  the  annual  statement: 

(1)  Under  Resources  enter  the  amount  on  hand  as  shown  by 
tiie  Cash  Book  at  the  close  of  the  last  day  of  the  year.  When  Fox 
balanced  his  cash,  March  31st  (Plate  53).  he  had  |42.59  on  hand. 
This  is  a  Resource,  and  is  the  first  item  entered  under  that  head  in 
the  statement. 

(2)  Taking  the  Ledger  (Plate  G2),  we  find  "Clovermead"  |12,- 
900.00.  This  also  is  a  Resource,  because  anything  is  a  resource 
of  value  belonging  to  us;  and  by  value,  we  mean  cash,  or  some- 
thing we  could  realize  the  cash  for  if  necessary.  And  Clovermead 
Farm,  as  it  is  today,  would  fetch  this  amount;  it's  worth  that 
mucli,  hence,  a  resource. 

(3)  The  next  open  account  is  Bills  Payable.  These  are  notes 
we  owe,  and  as  everything  left  standing  on  the  credit  side  of  the 
Ledger  is  either  a  Liability  or  a  Gain,  we  must  decide  which  of  the 
two  it  is.  This  is  easy,  for  we  know  it  isn't  a  gain,  because  we 
owe  it;  therefore,  it's  a  Liability,  and  so  entered  on  the  statement. 

(4)  The  next  accouni;  Production  (Plate  68),  is  a  Resource. 
The  inventory  taken  today  (March  31st),  at  market  price  for  the 
Stock,  Corn,  Potatoes  and  Clover  Hay  Fox  has  on  hand  is  $2,- 
014.20.      That  is  the  cash  value  we  could  realize  for  it  if  sold. 

(5)  Feed  is  next  (Plate  72).  This  is  also  a  Resource,  for  the 
same  reason  that  the  items  in  the  Production  account  are.  Con- 
sequently, we  enter  the  amount  we  have  on  hand,  |74.10. 

(6)  Implements  follow  Feed,  and  are  also  a  Resource.  In- 
ventory shows  f732.40  as  their  value  today,  and  they,  too,  are 
entered. 

(7)  On  Plate  79  we  find  Wise  has  |106.40  due  him.  A  Lia- 
bility is  something  we  owe.  We  owe  Wise  this  balance  of  |106.40 
for  wages  he  left  stand  during  the  previous  year,  so  that  amount 
goes  under  Liabilities. 

(8)  The  next  account  showing  a  Resource  is  the  First  Na- 
tional Bank.  All  cash  we  have,  whether  on  hand  or  in  the  bank, 
is  a  resource,  and  the  balance  Fox  has  to  his  credit,  fl,846.71, 
should  be  so  entered  in  this  statement. 

(9)  This  takes  all  the  open  accounts  in  the  Ledger  except  one 
— the  Proprietor's  account — J.  Fox.     After  all  the  accounts  show- 

137 


HOIV  TO  KEEP  FARM  ACCOUNTS. 


ing  the  Losses  aud  Gains  were  closed  into  the  "Luss  aud  Gaiu'' 
account,  and  the  net  gain  of  Fox  credited  to  his  account,  his  ac- 
count was  bahtuced  and  closed,  and  his  Present  Worth  (Plate  Gl) 
of  ?12.703.GO  is  wliat  the  business  of  the  Clovermead  Farmstead 
is  owing  hhn  at  this  time,  therefore,  it  is  a  Liability  of  the  busi- 
ness, and  by  footing  both  the  Resources  and  Liabilities  we  find 
they  equal  each  other.     The  bouks  are  in  balance,  and  a  glance 
at  this  simple  statement,  or  the  statement  taken  from  any  Ledger, 
at  the  end  of  the  year,  will  show  the  tiwner  of  the  business  what 
cash  he  has  on  hand  and  in  bank,  who  is  owing  him,  either  by  Bills 
Receivable  or  open  account,  and  the  amount  of  grain,  live-stock, 
implemeuts.  feed,  or  anything  else  he  may  have  of  value  belong- 
ing to  him.     It  also  shows  him  what  he  owes,  aud  to  whom;  aud 
his  actual  and  absolute  net  worth.     Further,  the  Losses  and  Gains 
taken  from  the  "Loss  and  Gain"  account  (Plates  90  and  91)  will 
show  him  the  total  General  Expense,  the  amount  of  cash  paid  out 
for  Feed,  the  percentage  of  depreciation,   charged   to   l.,<jss   and 
Gaiu,  on  his  I'arm  Implements,  what  amount  he  paid  for  Labor, 
how  much  his  Interest  amounted  to,  and  the  Taxes  and  Insurance 
for  the  year.     The  above  are  entered  under  "Losses."  because  they 
are  non-productive  accounts — nothing   can   be   realized  on   them 
in  cash.     But  under  "Gains"  w(»  have  Production,  $4,043.50;  and 
this  amount  represents  everything  having  a  cash  value  that  left 
the  farm  during  the  entire  year — the  total  sales.     Now,  $4.043.o0 
being  the  total  proceeds  of  the  sales,  thai  amount,  less  the  sum 
total  of  the  "Losses,"  will  be  the  net  gain  of  the  Proprietor — Fox. 
The  whole  cost  of  conducting  this  farm  for  the  year,  including 
general  "Expense','  "Feed."  "Labor,"  "Interest."  "Taxe.s"  and  "In- 
surance," aud  the  depreciation  of  "Implements,"  was  >i;l,919.93.   By 
deducting  this  from  the  "Gains"'  (total  sales),  we  have  ?2,123.57, 
or,  the  net  gaiu  of  Fox  for  the  year. 

The  annual  statement,  then,  is  the  final  summing  up  of  the 
year's  business  on  I  lie  farmstead,  aud  is  a  most  valuable  guide  to 
every  thinking  farmer. 

225.  And  now.  if  we  want  to  know  what  percentage  of  net 
gain  Fox  made  on  his  investment,  add  two  ciphers  to  his  net 
gain,  as  shown  by  the  "Loss  aud  Gain"'  account,  and  divide  it  by 
the  net  amount  of  his  investment.  Tiius:  21235700 — 1024<;3l 
equals  a  percentage  of  20.72. 

138 


Part   Seven 


NUBS  OF  NOTES 

ON 
Business  Paper,  Interest  Tables, 

Rules  Useful  When  Taking  the  Farm  InTentory, 
etc.,  etc. 


HOW  TO  KEEP  FARM  ACCOUNTS. 


BUSINESS    PAPER. 

226.  If  yuu  receive  a  check  or  draft  made  payable  to  the 
order  of  the  party  sending  it  to  you,  and  he  has  not  endorsed  it, 
it  is  worthless  as  far  as  you  are  concerned.  Return  it  to  the 
sender  for  endorsement. 

227.  Sliould  you  haA'e  endorsed  it  before  noticinjjj  the  send- 
er's failure  to  endorse,  erase  your  name  by  drawing  lines  through 
it  with  a  pen. 

228.  If  you  discount  notes  at  your  bank,  which  have  en- 
dorsers, do  not  waive  protest,  as  the  security  may  be  released. 

229.  When  buying  drafts  always  have  them  made  payable 
to  your  (vwu  order,  and  then  endorse  them  over  to  the  person  you 
wish  to  pay.  , 

230.  All  checks  should  be  made  payable  "To  order."  They 
(?annot  then  be  transferred  without  endorsement,  and  constitute 
in  themselves  the  best  receipt  you  can  hold  for  money  paid.  This 
is  one  of  the  many  reasons  why  you  should  have  a  bank  accoiint. 

231.  Nowadays  all  checks  are  printed  to  read  ''Pay  to  the 
order  of."  If  you  want  currency,  simply  write  "Cash"  after  "Pay 
to  the  order  of."  This  is,  in  effect,  the  same  as  making  it  payable 
to  bearer.  , 

232.  If  a  discrepancy  exists  between  the  amount  as  written 
in  the  body  of  a  check,  draft  or  note,  and  amount  in  figures  in  the 
margiE,  the  former  is  held  to  be  the  intended  amount;  but  banks 

233.  No  particular  form  is  necessary  for  a  note,  but  it  must 
contain  an  order  to  pay  or  promise  to  pay. 

234.  The  cancelled  note  you  receive  should  never  be 
destroyed — tear  the  signature  through  the  middle  and  destroy  the 
torn  off  piece.  It  isn't  of  any  value  then  to  anybody  but  yourself, 
and  there  may  come  a  time  when  you  will  need  it  as  a  voucher. 

235.  INDORSING  CHECKS.— If  you  wish  to  make  a  draft 
or  check  payable  to  another,  write  on  the  back,  about  three  inches 

143 


HOW  TO  KEEP  FARM  ACCOUNTS. 


from  the  upper,  or  left-hand  end,  "Pay  to  order  of,"  and  the  name 
of  the  party  to  whom  you  wish  to  send  or  give  it.  and  then  your 
own  signature,  juh't  as  it  appears  on  the  face. 

236.  STOPPING  PAYMENT  OF  CHECKS.— If  you  desire 
to  stop  the  payment  of  a  checlc  that  you  have  given,  notify  your 
bank  at  once —  lose  no  time — and  give  the  bank  full  particulars. 
Yon  cannot  stop  payment  of  a  check  that  has  been  "Certified."' 

237.  NOTES  ENDORSED  OVER  TO  YOU.— If  you  receive 
a  note  made  payable  to  another  and  endorsed  over  to  you.  be  care- 
ful to  notice  whether  any  payments  have  been  indorsed  on  it — 
a  note  is  only  worth  its  face  less  the  payments  made  on  it. 

238.  FORMS  OF  RFSINESS  PAPER.— The  forms  of  paper 
used  in  the  ordinary  course  of  business  follow.  The  general 
farmer  doesn't  have  a  great  variety  of  business  paper  to  handle, 
yet  the  following  may  be  useful  for  reference. 

339.     RECEIPT  TO  APPL^'  ()?n  ACCOUNT.— 


$200.75  Hudson,  Ohio,  July   12,   1900. 

Received  of W.   H.   Brown 

Two    Hundred    &   "S-ioo Dollars, 

to  apply  on  account. 

W.  T.  CHA.MBERLAIX. 


240.     RECEIPT  IN  FULL  OI-^  ACCOUNT.- 


$36.20  Chicago,    111.,   .March   3,    1901. 

Received   of John  Johnson 

Thirty-Six    &    20-100 Dollars. 

in  full  of  account  to  date. 

LANDERS    PUBLISHING    CO. 


241.     RECEIPT   l"(>K    l'A> MKNT  OX   XOTE.- 


$100.00  ."^tandish,  Mich,  Jan.  o.   1901. 

Received   ol E.    H.    Mohr 

One  Hundred Dpllars, 

as  a  partial  payment  on  his  note  under  date  Oct.  13,  1899. 
for  Five   Hundred   Dollars,  payable  to  me. 

JOHN    LIVINGSTON. 


144 


HOIV  TO  KEBP  FARM  ACCOUNTS. 


243.     DUE  BILL.— 


$12.00 

Due 

Xwelvt* 

Columbus  Grove,  Ohio,  June  8,  1900. 

Ed  Wise...., 

Dollars, 

on  demand. 

JOHN  FOX. 

243.     OKDIXAKY  I'KOMISSORY  NOTE.- 


$500.00  Newnrls,  Oliio,  May  16,   1901. 

Sixty    days   after    date.    I    promise    to    pay    Frederick 

Weise   or   order Five    Hundred Dollars, 

value  received,   with   interest.     Payable   at    First   National 

Bank. 

JOHN    FOX. 


244.     JOINT  NOTE. 


$200.00  Osborn,  Ohio,  August  10,  1900. 

Ninety   days  after  date,  we  promise   to  pay  John   M. 

Jamison   or   order Two   Hundred Dollars, 

value   received,  with   interest,  at   First  National  Bank. 

HENRY   BERGH. 

EDWARD    TAYLOR. 


245.     BANK  NOTE. 


Lima,  Ohio,  April  10,  1900. 


$300.00 

Ninety    days    after    date    I    promise    to    pay    W.     E. 

Harding,  cashier,  or  order Three  Hundred Dollars, 

value   received,   with    interest.     Payable    at    Farmers'    Na- 
tional   Bank. 

JACOB   ASH. 

Endorsed   on  back   by   Frederick  Williams,   A.   H.   Wells. 


TO   MEASURE  CORN. 

246.  ON  COB.— Two  beapiii^-  bushels  of  corn  on  tho  cob  will 
make  one  struck  bushel  of  shelled  corn.  Some  claim  that  one  and 
one-half  bushels  of  ear  will  make  one  bushel  of  shelled  corn. 
Much  will  depend  upon  the  kind  of  corn,  shape  of  the  ear,  size 
of  the  cob,  etc. 

145 


HOW  TO  KEEP  FARM  ACCOUNTS. 


247.  IN  CRIB. — To  measure  corn  in  a  crib,  multiitly  flic 
lenj^tb  of  the  crib  in  inches  by  the  width  in  inches,  and  that  by 
tlie  heijiht  of  the  corn  in  tlie  crib  in  inches,  and  divide  the  product 
by  2,7-4.S,  and  the  <|Uotient  wii!  be  tlie  uuniber  of  heaped  bushels 
of  ears.  If  the  crib  Hares  at  the  sides,  measure  tlie  width  at  the 
top  and  also  at  he  bottom,  add  the  two  sums  together,  and  divide 
by  2.  which  will  _a,ive  the  mean  width. 

248.  coil's  SHKIXKAt  ;]■:.— Corn  will  shrink  from  the 
time  it  is  husl^ed  in  the  antunin,  in  well-protected  cribs,  from  20 
to  30  per  cent,  by  sprinji.  That  is,  100  bushels  will  shrink  to  70 
or  80,  according'  to  how  dry  it  was  when  cribbed. 

GRAIN    IN    BINS. 

249.  TO  MEASURE  GRAIN  IN  BINS.— Multiply  the 
length  of  the  bin  in  inches  by  the  width  in  inches,  and  that  by 
the  height  in  inches,  and  divide  by  2,150  for  struck  bushels,  and  by 
2,748  for  heaped  bushels.  The  quotient  will  be  the  number  of 
bushels  contained  in  the  bin. 

250.  Agricultural  reports  estiinnlc  llmt  new  wheat  shrinks 
()  per  cent,  in  six  months.  Hence,  1)4  cents  in  August  is  ecuuil  in 
•fl.OO  in  I\4)ruary. 

MEASUREMENT   OF   HAY. 

251.  The  only  exact  method  of  measuring  hay  is  to  weigh  it. 
hut  the  rules  given  below  will  be  found  sufficiently  e.vact  when 
taking  the  inventory. 

252.  TO  FIND  THE  NUMBER  OF  TONS  OF  .MEADOW 
HAY  IN  WINDRC^WS.— :Multiply  together  the  length,  breadth 
and  height,  in  yar<ls.  and  divide  the  iimduct  l»y  25.  The  (luoticnt 
will  be  the  number  of  tmis  in  IIm-  windrow. 

253.  TO  FIND  THE  NUJIBER  OF  TONS  OF  HAY  IN  A 
MOW. — Multiply  together  the  length,  height  and  width,  in  yards, 
and  divide  by  15.  if  the  hay  be  well  packed.  If  the  mow  be  shal- 
low, and  the  hay  recently  placed  therein,  divide  by  18.  and  by  any 
number  frcmi  15  to  18,  according  as  the  bay  is  well  packed. 

254.  TO  FIND  THE  NU.AIBER  OF  TONS  OF  HAY  IN 
S(2UARE  OR  LONG  STACKS.— Multiply  the  length  of  the  base 
in  yards  by  half  the  width  in  yards,  and  that  by  half  the  height 
in  yards,  and  divide  by  15. 

146 


HOW  TO  KEEP  FARM  ACCOUNTS. 


255.  TO  FIND  THE  NUMBER  OF  TONS  OF  HAY  IN  A 
LOAD. — Multiply  togetlier  the  length,  width  and  height,  in  yards, 
and  divide  the  product  by  20. 

256.  TO  MEASURE  HAY  IN  STACK.— The  area  of  the 
base  multij)lied  by  the  the  perpendicular  height  to  eaves,  plus  one- 
tliird  the  perpendicular  height  from  eaves  to  crest,  will  give  the 
number  of  cubic  feet  in  a  stack  the  sides  of  which  are  perpendic- 
ular to  a  greater  or  less  height.  If  the  stack  slopes  uniformly 
from  base  to  crest,  then  multiply  the  area  of  the  base  by  one-third 
of  the  perpendicular  height.  To  Mud  the  area  of  the  base,  divide 
the  distance  around  it  by  3.1-410,  take  one-half  of  the  result  and 
scjuare  it,  then  multiply  by  3.1J:1(!.  The  number  of  cubic  feet 
necessary  for  a  ton  of  good,  well-si'tlled  hay  is  about  -iSO. 

257.  ANOTHER  METHOD.— Measure  the  stack  for  length, 
width  and  the  "over."  To  get  the  "over,"  throw  a  tape-line  over 
the  stack  at  an  average  place  from  ground  to  ground,  drawing 
it  tiglitly.  IMuitipl}'  the  width  by  the  "over,"  and  divide  the  result 
by  i;  multiply  the  result  of  tlie  division  by  the  length  for  approxi- 
mate cubical  contents  of  the  stack.  To  reduce  to  tons  for  hay 
that  has  stood  in  stack  for  less  than  twenty  days,  divide  oibical 
contests  by  512;  for  more  than  twenty  days  and  less  than  sixty 
days,  divide  cubical  contests  b}-  422;  for  more  than  sixty  daj's, 
divide  by  380. 

•  25S.  TO  FIND  THE  VALUE  OF  PRODUCTS  SOLD  BY 
THE  TON  AT  A  GIVEN  PRICE.— To  ascertain  the  value  of  a 
given  number  of  pounds  of  hay,  straw  or  other  commodity  sold  at 
a  given  price  per  ton,  multiply  the  number  of  pounds  by  one-half 
the  price  per  ton,  and  point  off  three  figures  from  the  right.  The 
result  will  .be  the  price  of  the  article. 

MEASUREMENT    OF    WOOD. 

250.  A  cord  of  wood  contains  128  cubic  feet.  To  ascertain 
how  many  cords  there  are  in  a  pile  of  wood,  multiply  the  length 
by  the  height,  and  that  by  the  width,  and  divde  (he  product  by  128. 


147 


HOJV  TO  KEEP  FARM  ACCOUNTS. 


260.     SIX   PER   CENT.    INTEREST  TABLE.— 


Time. 

$1 

$2 

$3 

$4 

$5 

$6 

$10 

$20 

$50 

$100 

$1000 

Days    1 

0 

0 

0 

0 

0 

0 

0 

0 

1 

2 

17 

2 

0 

0 

0 

0 

0 

0 

0 

1 

2 

3 

38 

3 

0 

0 

0 

0 

0 

0 

1 

1 

3 

5 

50 

4 

0 

0 

0 

0 

0 

0 

1 

1 

3 

7 

67 

S 

0 

0 

0 

0 

0 

1 

2 

4 

8 

83 

6 

0 

0 

0 

0 

1 

2 

5 

10 

1  00 

7 

0 

0 

0 

0 

1 

1 

2 

6 

12 

1  17 

8 

0 

0 

0 

1 

3 

7 

13 

1  33 

9 

0 

0 

0 

1 

1 

2 

3 

8 

15 

1  50 

10 

0 

n 

1 

. 

2 

3 

8 

17 

1  67 

15 

0 

1 

2 

3 

5 

13 

25 

2  50 

20 

0 

1 

2 

2 

3 

7 

17 

33 

3  33 

25 

0 

1 

2 

2 

2 

4 

8 

21 

42 

4  17 

30 

1 

2 

2 

3 

3 

5 

10 

25 

50 

5  00 

33 

1 

2 

2 

3 

3 

6 

11 

28 

55 

5  50 

63 

1 

2 

3 

4 

5 

6 

11 

21 

53 

1  05 

10  SO 

93 

2 

3 

5 

6 

8 

9 

16 

31 

78 

1  55 

15  50 

Months  1 

1 

1 

O 

2 

3 

3 

5 

10 

25 

50 

5  00 

2 

1 

2 

3 

4 

5 

6 

10 

20 

50 

1  00 

10  00 

3 

2 

3 

5 

6 

8 

9 

IS 

30 

75 

1  50 

15  00 

4 

2 

4 

6 

8 

10 

12 

20 

40 

1  00 

2  00 

20  00 

5 

3 

5 

8 

10 

13 

15 

25 

50 

1  25 

2  50 

25  00 

6 

3 

6 

9 

12 

15 

IS 

30 

60 

1  50 

3  00 

30  00 

7 

4 

7 

11 

14 

18 

21 

35 

70 

1  75 

3  50 

35  00 

8 

4 

8 

12 

18 

20 

24 

40 

80 

2  00 

4  00 

40  00 

9 

5 

9 

14 

18 

23 

27 

45 

90 

2  25 

4  50 

45  00 

10 

5 

10 

15 

20 

25 

30 

50 

1  00 

2  50 

5  00 

SO  00 

11 

6 

11 

17 

22 

28 

33 

55 

1  10 

2  75 

5  50 

55  00 

12 

6 

12 

IS 

24 

30 

36 

60 

1  20 

3  00 

6  00 

60  00 

261.     INTEREST   TABLE.— 

The  following  will  be  found  convenient  in  the  absence  of  ex- 
tended interest  tables: 

To  find  the  interest  on  a  given  sum,  for  any  number  of  days, 
at  any  rate  of  interest. 

nt.,  multiply  the  principal  by  the  number  of  days  and  divide  by  72. 

60. 
52. 
45. 
40. 
35. 


At 
At 

5 
6 

per 

CO 

At 

7 

At 

8 

At 

10 

At 

12 

148 


GESTATION    TABLE. 

262.  A  table  sliowin^i!,-  the  period  of  gestation,  or,  when  colts, 
calves,  lambs  and  pigs  may  be  expected,  the  date  of  service  being 
known. 


Time    of 
Service 


Mares 
3i0  Days 


Cows 
283  Days 


Ewes 
150  Days 


Sows 
112   Days 


January     1 

"  ....    2 

"    .'.'.'. '.'.'.'.  .11 

••       16 

"       31 

■'       36 

"        31 

February     5 

"       10 

"       15 

"       30 

"       25 

^rarcIl    2 

"  7 

"       12 

"      17 

"       22 

"        27 

April    1 

"       6 

"       11 

"       16 

"       21 

"        26 

May    1 

"       6 

"       11 

10 

•'       21 

•'       26 

"       31 

June   5 

••       10 

15 

"       20 

"       25 

"       80 

July   5 

"       10 

"       15 

"       20 

"       25 

"       30 

\ugust     i 

"       9 

"       14 

"       19 

"       24 

"        29 

September    ....   3 

"      S 

"       13 

"       23 

"       28 

October    3 

"      8 

"      13 

"       18 

"       23 

'•       38 

November     ....   2 

"       7 

"       12 

"       17 

"       22 

"       27 

December   2 

"      7 

"      12 

"      17 

"       22 

"       27 

"       31 


December   6 

"      11 

"      16 

•'      21 

"      26 

31 

January     5 

"       10 

"       15 

•'       20 

••       25 

"       30 

February    4 

"       9 

•'       14 

" 19 

"       24 

March     1 

■'       6 

"       11 

"       16 

"       21 

•■       26 

"       31 

.\pril    5 

10 

"       15 

"       20 

"       25 

"       30 

May     5 

"       10 

"       15 

"       20 

"       25 

"       30 

June    4 

"       9 

"       14 

"       19 

"       24 

"        29 

July      9 

"       14 

"       19 

"       24 

"       29 

.\ugust    3 

"       8 

"       13 

"       IS 

"        2S 

"        28 

September    .  —   2 

"      7 

"      13 

"      17 

"      22 

"      27 

October     2 

•'       7 

•'       12 

"       17 

"       22 

"       '. 27 

November     ....   1 

"      6 

"      11 

"       16 

"       31 

"       26 

December     ....   1 
"      5 


October     10 

"      15 

••      20 

"       25 

"       30 

November     ....   4 

"      9 

"      14 

"       19 

"       24 

"       29 

December 4 

■'       9 

"       14 

"       19 

"       24 

"       29 

January    3 

"       8 

"       13 

"       18 

"       23 

"       28 

February    2 

"       7 

"       12 

"       17 

"       22 

"       37 

March    4 

"       9 

"       14 

"       19 

"       24 

'•       29 

.\pril    3 

"       8 

"       13 

"       18 

"       23 

"       28 

May     3 

'■       8 

"       13 

"       18 

"       23 

"       28 

June     2 

"       7 

"       12 

•'      17 

"       22 

"       27 

July      3 

"       7 

"       13 

"       17 

•'       22 

"       27 

.August    1 

"       6 

"       11 

"      18 

"       21 

"       26 

"       31 

September    5 

"       10 

"       16 

"       20 

"       25 

„"       30 

October    5 


May     30 

June    A 

"      9 

"       14 

"       19 

■•       24 

"       39 

July     4 

"       9 

"       14 

"       19 

"       24 

"       29 

August    3 

"       8 

"       13 

"       18 

"       23 

"       28 

September    ....   2 

"       7 

"       12 

"       17 

"       32 

"       37 

October    2 

"      7 

"       12 

"       17 

"       22 

"       27 

November    1 

"       6 

"       11 

"       16 

"       21 

"       26 

December   1 

"       6 

"       11 

"       16 

"       21 

"       26 

"       31 

January   5 

"       10 

"      15 

"       20 

"       35 

"       30 

February    4 

"       9 

"       14 

"       19 

"       24 

March    1 

"      6 

"      11 

"       16 

"       31 

"       36 

"       31 

April    5 

•'       10 

"        15 

"       30 

"       25 

"       30 

May    5 

"       10 

"       15 

"       30 

"       25 

29 


.\pril    32 

•'       27 

May     2 

■•       7 

"       12 

"       17 

"       23 

"       37 

June     1 

"     e 

"     11 

10 

"       21 

"       30 

July    1 

6 

"       11 

"       16 

"       21 

•'       36 

"       31 

August    5 

"       10 

"       15 

"       20 

"       35 

"       30 

September    ....   4 

"      9 

"      14 

"       19 

"       24 

"       29 

October    4 

"       9 

"       14 

"       19 

"       24 

"       29 

November    3 

"       8 

"       13 

"       IS 

"       23 

"       38 

December 3 

"      S 

"      13 

"       18 

"       23 

"        2S 

January    3 

"      7 

"      13 

"       17 

"       22 

"       27 

February  1 

"       6 

"     n 

"      .16 

"       21 

"       36 

March    3 

"       S 

"       13 

"       23 

"       2S 

April    2 

"       7 

"       12 

"       17 

"       21 


The  first  column  i^ives  date  of  sei-vice.  On  the  same  line, 
under  the  diffeient  columns  headed  Mares,  Cows,  etc.,  is  given  the 
date  the  progeny  may  be  exi)ected  from  such  service. 


263.     WEIfJIlTS   AND   MEASURES.  — 

Avoirdupois  or   Commercial  Weight. 

16  drams =  1  ounce 

16  ounces =1  pound 

25   pounds =^1   quarter 

4  quarters  or  100  pounds =  1  hundredweight 

20  hundredweight  or  2000  lbs —  1   ten 

Troy  or  Jewelers'  Weight. 

24  grains =1  pennyweight 

20  pennyweights ^1  ounce 

12  ounces —  1  pound 

Apothecaries'  Weight. 
20  grains =1  scruple 

3  scruples =1   dram 

8  drams =1  ounce 

12  ounces =  1  pound 

Dry  Measure. 

2   pints =1  quart 

8  quarts =  1  peck 

4  pecks =1  bushel 

8  bushels  (480  pounds) ^1  quarter 

36  bushels ^1  chaldron 

Liquid   Measure. 

4  gills =1   pint 

2   pints =1   quart 

4  quarts =1  gallon 

31  'A   gallons =1  barrel 

2  barrels,  or  63  gallons =1  hogshead 

Apothecaries'  Fluid  Measure. 

00    minums =  1    tluid  dram 

8  lluid  drams =1   fluid  ounce 

16  fluid  ounces =1  pint 

8    pints — 1   gallon 

Line  or  Linear  Measure 
12  inches ,=^1  foot 

3  feet =1  yard 

5'A  yards  or  \6'/j  feet =1  rod  or  pole 

40   rods =1  furlonpT 

8  furlongs =1  mile  (statute  mile) 

3  miles z-\  league 

Surveyors'  or  Chain  Measure. 
7.92    inches =  1   link 

25  links ^1   rod  or  pole 

4  rods  or  66  feet —1  chain 

80  chains =^1   mile 

Square  or  Surface  Measure 
144  square  inches =1  square  foot 

9  square   feet =1   square  yard 

30;4  square  yards =1  square  rod  or  perch 

160  square  rods =1  acre 

640  acres =;1   square  mile  or  section 

Surveyor's  Square  Measure 

625   square   links :=1  square  rod  or  pole 

16  poles ^1   square  chain 

10  square  chain =1   acre 

640  acres =1  square  mile  or  section 

36  square  miles  (6  miles  square) ^1  township 

Solid  or  Cubic  Measure 

1728  cubic  inches =1  cubic  foot 

27  cubic  feet =1  cubic  yard 

16  cubic  feet ^1  cord  foot 

8  cord  feet  or  128  cubic  feet =1  cord  of  wood 

24-)4    cubic    feet =rl   perch 


(f- 


TU    UOQUZ 


,,Y  OF  CALIFORNIA  LIBRARY 


30m-l,'15 


